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GS: What energy and utilities stocks have outperformed and underperformed in 2024

Published 05/20/2024, 11:34 AM
© Reuters.

Investing.com -- Analysts at Goldman Sachs have picked out stocks from the utilities and sectors that both outperformed and underperformed so far this year. Here were some of their findings:

In utilities, NextEra Energy (NYSE:NEE) has been a strong performer in 2024. They noted that the stock has benefited from the Federal Election Commission voting in March to close its file regarding allegations that NextEra's Florida Power & Light unit had violated campaign finance laws.

Xcel Energy (NASDAQ:XEL), meanwhile, has been the worst performer in its coverage of the sector, largely due to the firm's role in igniting the largest wildfire in the recorded history of Texas earlier this year.

In oil and gas, Antero Resources (NYSE:AR) has outperformed thanks to "strong execution versus guidance and capital efficiency outlook" in both its fiscal fourth quarter and first quarter results, the Goldman Sachs analysts said.

APA Corporation, however, has been hit by headwinds across its operations in Egypt and the North Sea, the analysts warned, adding that the hydrocarbon explorer has "less upside" compared to its peers.

Elsewhere, they said that Calgary-headquartered Suncor has outperformed in the "integrated & majors" category, with shares in Canada's second-largest oil producer surging by around 27% year-to-date. The Goldman analysts remain constructive on the stock, citing "improving quarterly execution" and a "commitment to shareholder returns."

Par Pacific, however, has lagged the broader energy industry this year. The analysts said this was due to softer-than-anticipated first-quarter earnings coupled with a "tougher" first-quarter refining margin environment.

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