One thing that is critical for savvy investors is to look at sectors where there is truly blood in the streets. Think back to the financial and home building sectors after the mortgage and housing collapse of 2007/2008. Even the very best companies were trading in the single digits and left for dead. In a recent research report, Deutsche Bank trolled the oil services battlefield and came up with three stocks to buy that could have massive upside potential.

Needless to say, an extended oil price recovery may not come until 2017, and the sector damage is just starting to minimize. Many companies in the oil services area are trying to rein in capital expenditures and keep all costs under control while trying to plan and survive for the future.

These Deutsche Bank stocks to Buy are for aggressive accounts that have a high tolerance for risk. With that caveat in mind, the upside potential is worth the shot.

Exterran

Deutsche Bank feels this oil field services stock has big potential upside. Exterran Holdings Inc. (NYSE: EXH) is a global market leader in full-service natural gas compression and a premier provider of operations, maintenance, service and equipment for oil and gas production, processing and transportation applications. Exterran Holdings serves customers across the energy spectrum, from producers to transporters to processors to storage owners. Headquartered in Houston, Exterran has more than 10,000 employees and operates in approximately 30 countries.

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The company bought the compression assets from a division of Chesapeake Energy last year. The purchase of MidCon Compression allowed Exterran to offer expanded compression services across many of the top shales and basins in the United States.

Exterran investors are paid a 3.23% dividend. The Deutsche Bank price target for the stock is $42, and the Thomson/First Call consensus target is $37.82. The stock closed Monday at $20.66, up over 6%.
Key Energy Services

This is another stock that hyper-aggressive investors may benefit from the substantial fall in the stock’s price since summer. Key Energy Services Inc. (NYSE: KEG) is down a gigantic 90% from highs posted a year ago, the company may be a way for investors looking to get substantial leverage on an oil services stock, and at this price level it could be a takeover candidate.

Key Energy Services bills itself as one of the largest onshore, rig-based well-servicing contractors based on the number of rigs owned. It provides a complete range of well intervention services and has operations in all major onshore oil and gas producing regions of the continental United States and Mexico, Colombia, Ecuador, the Middle East and Russia. The company’s target market is horizontal oil wells that are over four years old, and management expects the number of such wells in the United States will double to 90,000 in 2017 from 45,000 in 2014.

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The Deutsche Bank price target is $3, while the consensus target is $2.45. Shares closed Monday at a stunning $0.53. Note: as a penny stock only very aggressive accounts that can lose all the capital involved should consider this stock.

Nabors Industries

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 worldwide; 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 solid earnings for second quarter in the summer. While the company slightly missed on the bottom line, the revenues came in about as expected, and guidance wasn’t as draconian as perhaps many analysts feared.

Nabors investors are paid a 2.52% dividend. The Deutsche Bank price target is $20, and the consensus price objective is $14.14. Shares closed Monday at $10.37.

ALSO READ: 5 Top Oppenheimer Oil Service Stocks to Buy for Double-Dip in Rig Activity

As mentioned, these are stocks in which aggressive investors have a shot at a home run. Keep in mind that there could be substantial capital loss potential, should the fundamentals at these companies deteriorate. Again, investors need to remember the beating stocks took leading up to the low in March of 2009. Those who took calculated shots then reaped the benefits in a big way.

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