A pool of energy service stocks are likely to rally through year-end thanks to fatter profit margins leading to quarter-over-quarter earnings growth and higher price-to-earnings multiples, Goldman Sachs analysts said in a Tuesday note to clients.
Service stocks as a whole have far outperformed the Energy Select Sector SPDR ETF this year, Goldman noted.
OIH XLE 3M mountain Energy service ETF vs Energy ETF over past three months.
SLB : SLB is benefiting from increased spending on oil and gas exploration and production in the Middle East.
Other energy service stocks Goldman also rates a buy are Halliburton , MasTec and Expro Group Holdings .
Persons:
Goldman Sachs, Goldman, Ati Modak, Brent, Baker Hughes, BKR, — CNBC's Michael Bloom
Organizations:
Energy, VanEck Oil Services, Companies, bbl, Weatherford, Halliburton, MasTec, Expro Group Holdings