Energy stocks have already rallied sharply since the Strait of Hormuz closed, but Goldman Sachs says the real opportunity may just be starting, as higher oil forecasts reset valuations and leave select names with meaningful upside from current levels.

On Sunday the bank upgraded its oil price forecasts across the board, now expecting Brent crude to average about $80, $100, $90, and $80 per barrel across 2026 quarters, up from prior estimates of $75, $85, $70, and $70.

For 2027, Goldman raised its normalized Brent assumption from $70 to $75 per barrel.

Which Oil & Gas Stocks Does Goldman Favor?

Four Permian-focused exploration and production companies anchor the Goldman’s buy list. These names offer an average total return of about 22%, according to the report.

Neil Mehta, head of Americas energy equity research at Goldman Sachs, said in a Sunday note that Permian Resources Corp. (NASDAQ:PR) stands out on yield, trading at a 16% average free cash flow yield on 2027/2028 estimates ...