6 stocks set to soar

Before we talk about T-3 Energy, we need to introduce its rival, Cameron International. One of the hottest oil stocks of the past five years, Cameron makes specially engineered valves, wellheads, and other machinery that deep-sea oil drillers use to keep the oil and gas flowing under extreme pressure. Cameron, which ranks 34th on the 100 Fastest Growing list, has seen its stock rise fivefold since 2001.

In fact, with oil companies sending more and more offshore rigs into deepwater, business has been so strong for Cameron that it has more business than it can handle. And that is creating an opening for T-3, another oil services company in the valve and wellhead industry, though historically one with more of an onshore focus than Cameron.

"Cameron can't meet all the demand that's out there, so customers are going to T-3," says analyst Madsen. "This gives them an interesting opportunity to enter a high-margin bigger business."

The valuation comparison to Cameron is compelling. T-3, which has seen its stock fall 36% from its July high, trades at 15 times 2008 earnings, vs. a 16 price-earnings ratio for Cameron. Plus, its earnings are expected to grow faster: 30% and 36% this year and next, vs. 26% and 22% for Cameron.

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