Goldman Sachs recently highlighted several buy-rated stocks that are powering data centers, with some of these names also offering income and upside potential. Earlier this month, the firm rolled out the latest edition of its "Ten Buys" list of energy and power stocks that offer compelling risk/reward at current levels.
Goldman highlighted five investment themes behind its list of stocks: upside from mergers and acquisitions; bullish sentiment on refining; mean reversion in Big Oil; attractive risk/reward in international oil services; and the data center/power growth story.
Kodiak Gas Services and The Williams Cos appeared in the data center power cohort, both offering dividends that beat the S&P 500's current dividend yield of 1.04%.
Kodiak Gas Services is a Texas-based energy infrastructure company providing natural gas compression services, which Goldman deems "one of the more interesting opportunities in our midstream smid-cap coverage." The firm sees roughly 15% EBITDA growth through 2030.
The Williams Cos is a natural gas infrastructure company headquartered in Oklahoma, considered "one of the more compelling Buys in our large-cap midstream coverage." Goldman finds the company's diversification into behind-the-meter deals especially attractive.
Other dividend payers that made it to Goldman's "Ten Buys" list include Expro Group Holdings, Marathon Petroleum, and ConocoPhillips.
