This will be another good year for energy stocks, according to Goldman Sachs. Analyst Neil Mehta said in a note Tuesday that the sector outperforms the S&P 500 by 78% in 2022, and while a repeat of that level is unlikely, the landscape remains constructive. for energy stocks. “We see Brent in the multi-year range of $80-100/bbl (on the forward curve), the stock’s ‘sweet spot’ and look at company-specific dynamics around capital gains, development project development and implementation to promote healthy up/down dispersion,” he wrote. XLE 1Y mountain Energy Select Sector SPDR Fund Performance Goldman’s bottom-up price targets imply 13% of the total return-weighted market capitalization for the energy stocks it covers. The company’s buy-rated shares have an average total implied return of 26%. Investors should keep an eye out for dips in the space, Mehta said. There were three times in both 2021 and 2022 and he said he wouldn’t be surprised if there were a similar frequency this year. “That said, each pullback creates an attractive entry point for investors who may have missed the early stages of the rally,” he wrote. Of the stocks Goldman considers a buy, some are up more than 40% above the company’s price target. Here are 10 names on its buy list. According to Goldman Sachs, the stocks with the highest total returns are Antero Resources and Cheniere Energy, both at 48%. Antero Resources has hit a whopping 77% in 2022 and is down nearly 9% so far this year. Natural gas exporter Cheniere Energy has grown by nearly 28% in 2022, but has so far fallen about 5% since the start of the year. Cheniere was also named most reliable pick for 2023 by UBS in December, thanks to its exposure to the under-supplied liquid natural gas industry. Meanwhile, energy services will deliver the best earnings per share growth in 2023, Mehta said. In this space, he likes SLB, Halliburton, and especially Baker Hughes. “Given the clear performance, risk/reward looks particularly attractive for BKR from current levels as we head into 2023,” he wrote. Baker Hughes is up nearly 23% in the last year. Among the big companies, Mehta prefers Exxon Mobil and Conocophillips to Chevron. In an interview with CNBC’s Brian Sullivan on Thursday, Mehta praised Ryan Lance, CEO of Conocophilips. Under Lance’s leadership, he said, the company has been more growth-oriented, fixed its balance sheet and acquired Concho Resources in 2020. Conocophilips is now “the largest company in the world,” Mehta said. Stocks up 63% in 2022. — CNBC’s Michael Bloom Contribution Report.