Superior Energy Services

Superior Energy Services Inc. (NYSE: SPN) serves the drilling, completion and production-related needs of oil and gas companies worldwide through its brand name drilling products and its integrated completion and well intervention services and tools, supported by an engineering staff who plan and design solutions for customers.

It is Deutsche Bank’s current favorite mid-cap stock to play the U.S. land services recovery, and analysts think investors should see the impact of cost reductions as this year progresses, which some feel could help offset pricing pressure. The sector downturn has led to reductions in capex and capacity attrition, a positive for the survivors like Superior that have managed both extremely well in a very difficult environment.

Investors are paid a 2.1% dividend. Deutsche Bank has a whopping $26 price target. The consensus target is $20.33, and shares closed Wednesday at $14.18.

Weatherford

This stock has been absolutely demolished since its 2014 highs, but it may aggressive investors big upside potential. Weatherford International Ltd. (NYSE: WFT) is one of the largest multinational oilfield service companies, providing innovative solutions, technology and services to the oil and gas industry. It operates in over 100 countries and has a network of approximately 1,200 locations, including manufacturing, service, research and development, and training facilities and employs approximately 37,000 people.

The company offers customers a wide range of global capabilities, including a proprietary system for pressure management in the mushrooming arena of subsea production. The changes in government oil policy in Mexico in 2014 may provide some favorable tailwinds for the company, despite the huge downturn in oil pricing. This is currently the top large cap pick at Deutsche Bank.

The company recently named Mark McCollum as its new chief executive, luring him from his role as Halliburton’s chief financial officer. Weatherford immediately cut ties with interim CEO Krishna Shivram, who many analysts felt would keep the job. McCollum is scheduled to take the reins as president and CEO of Weatherford in late April.

The $8.00 Deutsche Bank price target compares with the consensus target of $7.46. The stock closed Wednesday at $6.28.

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Even if the capital expenditure downcycle does stay in place, these four companies are well positioned to continue to do well. They make sense for long-term investors who want to keep a weighting in the sector.