History often repeats itself, especially in the stock market. As the U.S. oilfield services industry rallies back from a brutal sell-off, one Wall Street firm says stick with what has worked. In a new report, RBC trots out the old slogan “If it ain’t broke, don’t fix it.” It is probably good advice for energy investors looking for avenues to make money as business starts to improve.

By using the old saying, what RBC is referring to is staying with the areas that have proven successful as the sector slowly heals. That means the land drillers and U.S. services over equipment companies and the offshore drillers. They highlight top stocks to buy in all the areas they are bullish on now and all are rated Outperform at RBC.

Baker Hughes

Baker Hughes Inc. (NYSE: BHI) agreed back in November to a friendly merger with fellow oil field giant Halliburton in a deal worth an astounding $34.6 billion. The tie-up between the two oil field giants raised big questions about whether the takeover could survive antitrust scrutiny, given the level of consolidation that it promises within the oil production services business. Created in 1987 with the merger of Baker International and the Hughes Tool Company, the company created innovative products like a rotary bit for drilling wells through rock.

The RBC team sees owning Baker Hughes as a cheaper way to play Halliburton and the recovery in the fracking business.

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Baker Hughes investors are paid a 1.05% dividend. The RBC price target for the stock is $82. The Thomson/First Call consensus target is $76.32. The stock closed Friday at $64.46.

Nabors Industries

This company provides drilling and rig services. Nabors Industries Ltd. (NYSE: NBR) offers rig instrumentation, optimization software and directional drilling services. It also provides completion, life-of-well maintenance and plugging and abandonment of a well. In addition, the company markets approximately 466 land drilling rigs for oil and gas land-based drilling operations in the United States, Canada and approximately 20 other countries; approximately 445 rigs for land well-servicing and workover services in the United States; 98 rigs for land well-servicing and workover services in Canada; 42 rigs for offshore drilling operations in the United States and internationally; and seven jackup units and components of trucks and fluid hauling vehicles.

Nabors posted strong earnings for the most recent quarter. First-quarter 2015 earnings from continuing operations — excluding one-time items — were $0.20 per share, crushing the consensus estimate of $0.05. The bottom line also jumped 25% from $0.16 per share in the year-ago quarter. Significant higher profit from drilling and rig services aided the results.

Nabors investors are paid a 1.67% dividend. The RBC price target is $19, and the consensus price objective is $17.43. Shares closed Friday at $14.75.

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Patterson-UTI Energy

Patterson-UTI Energy Inc. (NASDAQ: PTEN) subsidiaries provide onshore contract drilling and pressure pumping services to exploration and production companies in North America. Patterson-UTI Drilling and its subsidiaries operate land-based drilling rigs in oil and natural gas-producing regions of the continental United States and western Canada. Universal Pressure Pumping and Universal Well Services provide pressure pumping services primarily in Texas and the Appalachian region.

The company also reported better-than-expected first-quarter 2015 results on improved rig revenues. However, the bottom line did witness a substantial year-over-year decline due to a decrease in rig activity. Patterson-UTI reported earnings per share — excluding non-cash charges — of $0.06, surpassing the consensus of $0.03. The reported earnings were, however, substantially below the year-ago quarter earnings of $0.24. While not the blow-out of the other two, still very good considering the sector.

Patterson-UTI investors are paid a 2% dividend. The RBC price target is $26, and consensus target stands at $24.13. The stock closed Friday at $20.20.

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.

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Some Wall Street analysts feel that Superior could be one of the biggest beneficiaries of potential divestitures coming from the Baker Hughes and Halliburton. The RBC team has it as the firm’s top small-mid cap stock to own to play the U.S. land services recovery and think investors should see impact of cost reductions as this year progresses, which they feel could help offset pricing pressure.

Investors are paid a 1.4% dividend. The RBC price target is posted at $29, and the consensus target is $29.38. The stock closed Friday at $23.09.

Weatherford International

The RBC analysts feel that owning Weatherford is almost a derivative type play on the revenue fallout from the Halliburton Baker Hughes deal. Weatherford International Ltd. (NYSE: WFT) has been cut almost 50% since the highs the stock printed last summer, and it was forced to cut 8,000 jobs back in early February, almost 15% of the company’s total workforce.

The company still 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 last year may provide some favorable tailwinds for the company despite the huge downturn in oil pricing.

The RBC price objective for the stock is $19, and the consensus is posted at $16.02. The stock closed on Wednesday at $12.83.

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The oil services trade is still a contrarian one, to say the least. Oil apparently hit bottom late last year and has since turned much higher, and that is a plus. The pain in the industry is not going away anytime soon, so sticking with the top companies that have performed well makes good sense. Like they say, “If it ain’t broke, don’t fix it.”

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