Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 55th on the Fortune 500 list of the largest United States 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 bring our readers its top stock ideas. Recently, some big targets on strong buy-rated American energy services stocks caught our attention.
24/7 Wall St. Key Points:
Energy services stocks may be among the best way to play the energy sector.
Two Goldman Sachs top picks in the sector have well over 20% upside potential.
While oil could trade flat to down over the next year, natural gas has the potential to explode higher.
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Oil prices this year have dropped to levels not seen in four years. Despite OPEC+’s efforts to increase production, the potential for strong sanctions against Russia has put oil back on the front burner on Wall Street. Prices for West Texas Intermediate and Brent crude surged recently in front of the U.S. President’s meeting with Vladimir Putin. Despite current fears over demand, the summer driving season has almost a month left, and temperatures have been unseasonably warm, driving natural gas use. Many feel could explode higher as a fuel to keep top utilities running as they experience tremendous demand for AI-driven data centers.
The Goldman Sachs energy team is very positive on four American energy services stocks that all pay dividends, and all have decent upside to the price target set by the analysts. All four are outstanding ideas for growth and income investors looking to add some top energy services stocks to their portfolios. They said this when discussing the sector prospects in the future.
The downside risk for 2025 estimates is better reflected in the updated guidance provided through this earnings season. While this could potentially set up the stage for mean reversion names to gather stronger momentum, we continue to look for upward revision indicators for 2026. We believe investors are relatively more cautious for 2026, with the risk of a market oversupply driving oil prices lower and negatively impacting activity requirements both in North America and international markets. We currently continue to believe that the oil-focused activity levels should remain relatively steady in North America from exit 2025 levels, with the potential for a net rig count change to be positive in 1H26, driven primarily by gas activity.
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 institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years.
TechnipFMC
This is an off-the-radar company that the Goldman Sachs analysts are very positive on. TechnipFMC PLC (NYSE: FTI) is a United Kingdom-based technology company that operates in the energy industry. The company is focused on delivering fully integrated projects, products, and services while operating through two segments:
Subsea
Surface Technologies
The Subsea segment manufactures and designs products and systems, performs engineering, procurement, and project management, and provides services used by oil and gas companies involved in offshore exploration and production of crude oil and natural gas.
The Surface Technologies segment designs, manufactures, and supplies technologically advanced:
Wellhead systems, high-pressure valves, and pumps are used in stimulation activities for oilfield service companies and provide installation
Flowback and other services for exploration and production companies
The company operates across various countries, including the United States, Brazil, Norway, the United Kingdom, Guyana, Australia, and Angola.
The Goldman Sachs price target for the stock is $40.
Halliburton
This is one of the leaders in the energy services sector, and offers solid upside from current trading levels. Halliburton Co. (NYSE: HAL) is a provider of products and services to the energy industry and operates through two segments: Completion and Production, and Drilling and Evaluation.
The Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services.
The segment consists of:
Artificial Lift
Cementing
Completion Tools
Pipeline and Process Services
Production Enhancement
Production Solutions
The Drilling and Evaluation segment provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their healthy construction activities.
Its product service lines include:
Baroid
Drill bits and services
Halliburton project management
Landmark software and services
Sperry drilling
Testing
Subsea
Wireline
Perforating
Goldman Sachs has a $23 target price for the shares.
Patterson-UTI Energy
Trading just north of $5, this stock has massive upside to the Goldman Sachs price target. Patterson-UTI Energy Inc. (NASDAQ: PTEN) is a provider of drilling and completion services to oil and natural gas exploration and production companies in the United States and other select countries, including:
Contract drilling services
Integrated well completion services
Directional drilling services
Its Drilling Services segment provides a comprehensive suite of directional drilling services in major producing onshore oil and natural gas basins in the United States, and it provides services that improve the statistical accuracy of wellbore placement for directional and horizontal wells.
The Completion Services segment consists of a well completion business consists of services for hydraulic fracturing, wireline and pumping, completion support, and cementing.
Its Drilling Products segment engages in the manufacturing and distribution of drill bits throughout North America. The company’s drilling equipment is used in oil and natural gas exploration and production, and mining operations.
Goldman Sachs has a massive $7 price target, which would represent a giant 25% gain.
Schlumberger
This is another industry giant that has big-time upside to the Goldman Sachs price objective. Schlumberger N.V. (NYSE: SLB) is a global technology company that operates in four segments:
Digital & Integration
Reservoir Performance
Well Construction
Production Systems
The Digital & Integration segment combines its digital solutions and data products with its integrated offering of Asset Performance Solutions (APS).
The Reservoir Performance segment consists of reservoir-centric technologies and services that are critical to optimizing reservoir productivity and performance.
The Well Construction segment combines the full portfolio of products and services to optimize well placement and performance, maximize drilling efficiency, and improve wellbore assurance. The segment provides operators and drilling rig manufacturers with services and products related to designing and constructing a well.
The Production Systems segment develops technologies and provides knowledge that enhances production and recovery from subsurface reservoirs to the surface, into pipelines, and to refineries.
Goldman Sachs $40 target price is almost 22% higher than current trading levels.
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