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.