Three companies dominate the oil-services business. But BJ Services is more specialized than the other two, Halliburton and Schlumberger. Besides the prices of oil and gas, BJ Services' profits are also tied to the weather. Cold winters are great for BJ stock. But there's more to the company's prospects.
Demand is up for services that help crews extract more gas and oil from existing sources.
If you want growth in the energy sector for the next two or three years, you want to focus mainly on these servicers. But poor market conditions can create bargains. It's trading at about half its 52-week high even though business is booming. It is the arms dealer to the broadband race. Fears about slowing Internet and telecommunications growth deflated Quanta's stock in 2000.