Goldman Sachs Has 4 Strong Buy Dividend Energy Stocks With Up to 50% Upside Potential
These four Goldman Sachs dividend energy stock picks offer outstanding entry points and have up to 50% upside potential.
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Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue, and it ranks 55th on the Fortune 500 list of the largest U.S. corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. In addition, it provides advice, investing, and execution for institutions and individuals across public and private markets.
At 24/7 Wall St., we have followed the company’s research for 15 years to uncover its top stock ideas. Recently, some huge targets on recommended dividend energy stocks caught our attention.
Why we recommend Goldman Sachs stocks
Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide clients with the best ideas across the investing spectrum and is likely to continue for years. We were intrigued recently when examining the company’s equity research for the energy sector when we discovered that four of the firm’s Buy-rated dividend stocks have huge upsides over the firm’s established price targets. All four offer outstanding entry points and have up to 50% upside potential.
Devon Energy
This energy company may offer one of the best value propositions in the sector as it utilizes the variable dividend strategy and currently pays a 4.14% dividend. Devon Energy Corp. (NYSE: DVN | DVN Price Prediction) is an independent energy company that primarily explores, develops, and produces oil, natural gas, and natural gas liquids (NGLs) in the United States and Canada. It operates approximately 19,000 wells.
The company also offers midstream energy services through:
- Natural gas pipelines
- Plants and treatment facilities
- Gathering, transmission, processing, fractionation, and marketing to natural gas producers
- NGLs
- Crude oil
- Condensate producers
Production is primarily crude oil-focused, while growth opportunities are focused on liquids. The Delaware Basin, SCOOP/STACK, Eagle Ford Shale, Canadian Oil Sands, and the Barnett anchor the company.
Devon also owns equity in the publicly traded midstream MLP EnLink Midstream LLC (NYSE: ENLC).
The Goldman Sachs price target is $51, which represents 46% upside.
Diamondback Energy
This red-hot energy play looks poised to press higher again and offers a rich 4.86% dividend. Diamondback Energy Inc. (NASDAQ: FANG) is an independent oil and natural gas company focused on the acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas.
Diamondback Energy focuses on developing:
- The Spraberry and Wolfcamp formations of the Midland Basin
- The Wolfcamp and Bone Spring formations of the Delaware Basin, which are part of the Permian Basin in West Texas and New Mexico
The company also owns, operates, develops, and acquires midstream infrastructure assets, including 770 miles of crude oil gathering pipelines, natural gas gathering pipelines, and an integrated water system in the Midland and Delaware Basins of the Permian Basin.
The Goldman Sachs price target is $230, 35% higher than current trading levels.
Permian Resources
Trading at a reasonable 8.5 times earnings and offering a 4% dividend, this is an outstanding total return idea. Permian Resources Corp. (NYSE: PR) is an independent oil and natural gas company focused on the acquisition, optimization, and development of oil and natural gas properties.
The company’s assets and operations are concentrated in the core of the Delaware Basin.
Permian Resources position comprises over 479,500 net leasehold acres and approximately 94,900 net royalty acres across the Permian Basin. Most of its assets are concentrated within the Delaware Basin in Eddy and Lea Counties, New Mexico, and Reeves and Ward Counties, in Texas.
The Goldman Sachs price target objective is $19. That would be a 26% gain for investors.
Viper Energy
With a 5.19% dividend, this mid-cap energy play has huge upside to the Goldman Sachs target price. Viper Energy Inc. (NASDAQ: VNOM) is an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves, primarily in the Permian Basin in West Texas.
The company primarily focuses on oil and natural gas properties in the Permian Basin, which consists of approximately 75,000 square miles centered around Midland, Texas.
The Viper Energy assets consist of mineral and royalty interests underlying 1,197,638 gross and 34,217 net royalty acres, primarily in the Permian Basin.
Its estimated proved oil and natural gas reserves totaled 179,249 thousand barrels of crude oil equivalent (MBOE). The company’s proven undeveloped reserves include approximately 529 gross horizontal well locations. The company’s proved reserves include approximately 50% oil, 25% natural gas liquids and 25% natural gas.
With a Goldman Sachs price target of $70, that is a stunning 51% gain from current levels.
Our 4 Favorite February High-Yield Stock Picks All Pay 7% and Higher Dividends
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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
