Human beings find it necessary to poke their noses into all manner of unfriendly environments, including ocean depths and outer space. Fortunately, there is an outfit in Houston that is adept at helping folks deal with the rigors of operating in such places.

Oceaneering International (NYSE: OII) provides engineered services and products to the offshore oil and gas industry, the defense community and aerospace concerns. Deepwater offerings include oilfield testing systems, underwater drilling support, and construction/repair services. The firm also makes remotely operated diving vessels and robotic systems for use in space.

Oceaneering pleased investors earlier in the month, when it reported Q2 EPS of 86 cents and revenues of $432 million. Analysts had been expecting 71 cents and $377 million. Management also guided Q3 EPS to 80-88 cents (81 cent consensus) and FY07 EPS to $2.95-$3.10 ($2.84 consensus). The news popped the shares out of a late-July/early August "cup" into the mid-August "handle" of a Cup & Handle formation. Now, the price is showing signs of completing the pattern with a bullish rise from the right-hand side of the "handle."

Brokers recommend the shares with four "strong buys," three "buys" and one "hold." Analysts see a 20 percent growth rate, through the next year. The OII Price to Sales ratio (2.45), Sales Growth rate (38.86%) and EPS Growth rate (53.57%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95 percent of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $27.80 and $70.13. A stop-loss of $56.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.