Five years ago, oil prices were still firmly above $100 a barrel, and shares of oil drilling equipment firm Nabors Industries ( NBR) traded at around $45. These days, shares trade in the mid-teens, having never recovered from a deep slump in 2009. That year, Nabors saw revenue drop 32% to $3.5 billion as drilling activity slowed in the face of falling oil prices. Since then, demand has steadily rebounded, and revenue hit a record $6.7 billion in 2012.
Part of the rejuvenation stems from heavy investments in a very modern fleet of rigs, which is enabling Nabors to secure very firm lease rates for its equipment. Look for the good times to continue; analysts see sales exceeding $7.3 billion by 2015. Per-share profits should rise in tandem, from around one dollar in 2013 to $1.30 in 2014 to around $1.60 in 2015. The still-depressed shares don't reflect the ever-brightening outlook.
To see these fallen stars action, visit the 5 Stocks That Have Yet to Recover From the 2008 Crisis portfolio.
Twitter and become a fan on Facebook.