"The energy firms in our 'Hot List' aren't the big integrated firms; rather, they are instead mostly smaller, more specialized oil equipment, services, or operations firms," notes John Reese.

In Validea, he adds, "National-Oilwell Varco (NYSE: NOV) is currently the only stock out of the thousands in my database that gets approval from both my strict Benjamin Graham-based value strategy, and my James O'Shaughnessy-based growth model."

"Many oil services companies were hit particularly hard right around the time that oil prices peaked in the summer of 2008; the SPDR S&P Oil & Gas Equipment Services exchange-traded fund plummeted about 70% from July 11 to Nov. 20 of last year.

"The sector has surged since then. But as a group, they remain well behind the big oil names since last summer, and my strategies are seeing exceptional fundamentals and a lot of value in them.

"Take National-Oilwell Varco. The company designs, manufactures and sells equipment, components, and services used in oil and gas drilling and production.

"More than 160 years old, the company's products include major mechanical components for land and offshore drilling rigs, complete land drilling and well servicing rigs, extensive lifting and handling equipment, and downhole drilling motors, bits and tools.

"The stock has a market cap of about $17.3 billion, and the company has raked in more than $13 billion in sales in the past 12 months.

"To pass the Graham strategy, a stock needs to have a sterling balance sheet, and Varco does. Its current ratio is above 2.0 (it's 2.1), a sign of strong liquidity, and its net current assets ($5.4 billion) are far greater than its long-term debts ($875 million).

"In addition, it has the solid valuation ratios (11.7 price/earnings and 1.22 price/book) to get approval from the Graham model.

"At the same time, however, Varco has upped earnings per share in each year of the past five-year period, and it has a solid relative strength of 77, catching the eye of the O'Shaughnessy growth approach.

"The strong interest ratings from two approaches that are quite different means Varco is attractive on a number of levels."