Tap the Value in Oil Service

NEW YORK (TheStreet) -- After the big run-up we've seen in stocks since March, the one question I keep hearing from readers is this: Is there any opportunity left? I think there is, and one place to look right now is the oil-service stocks.

A lot of investors and a lot of professional money managers are kicking themselves, because no one expected the tremendous run we've seen in the markets in the last four months. Almost everyone, whether they had stock portfolios worth a couple thousand dollars or a couple million dollars, was underinvested.

Even today, most pundits are screaming that the market is overbought and cannot sustain these levels. They say the fundamentals just don't support where the S&P 500 is trading today. But if you continue to wait, you run the risk that the market will get further away from you.

Stock Market Opportunity: Oil

If you've been underinvested, or even out of the market entirely, you need to buy some stocks -- they're historically still the best investment out there. But after the run-up, there are fewer bargains, and you need to find some value too.

I think I've found it in the oil service sector.

The counterintuitive reason why I'm recommending these is that the recent fundamental story for oil services has been particularly bad.

Rig counts, upon which many of these stocks depend to prove growth, have seen major declines, and the prospects for growth during a recession are admittedly dim.

But not one of the companies I'm about to name is going away. They are well-established, and they have the capital to wait out any recession. They provide services that cannot disappear, and there is little risk of new competition. Their stocks saw values more than two and a half times what they are trading for now, and those numbers were seen barely more than one year ago.