These are the energy stocks to buy before New Year's Day, says Goldman


It's been a difficult year for energy stocks as low oil prices and high operating costs have pressured the sector, but Goldman Sachs believes a turnaround may soon be coming.

In a recent note to clients, the firm said EOG Resources, Pioneer Natural Resources and Parsley Energy are compelling buys within the exploration and production industry, given earnings sustainability and an improving macro backdrop.

"We are entering a bottoming phase for Energy equities in 2020, with potential for improving Energy equity sentiment as the year progresses resulting from lower non-OPEC supply growth outlook for 2021," Goldman analysts led by Brian Singer said.

More In Pro News and Analysis

CNBC ProJones, Icahn, Einhorn, Gundlach — Some of the biggest names in investing are betting on inflation
CNBC ProHow one outperforming energy investor is playing the jump in oil prices
CNBC ProWall Street analysts say these are the best-of-breed stocks to bet on heading into earnings