Goldman recommends energy stocks to ride oil gain, hedge inflation risk

Petroleum pump jacks are pictured in the Kern River oil field in Bakersfield, California.
Jonathan Alcorn | Reuters

Energy is the top-performing S&P 500 group this year after posting record gains in 2021, and Goldman Sachs believes there's more upside ahead for the group.

With inflation rising and oil prices at the highest in more than seven years, the firm said investors should boost their allocation to energy stocks.