What happened Shares of Oceaneering International (NYSE: OII) surged in July ending the month up 10.7% after receiving a quick rating upgrade and reporting expectation-beating second-quarter results. So what On July 20th, Seaport Global upgraded Oceaneering from sell to neutral stating that the offshore service company was its preferred name in the deepwater service market. What's noteworthy about this rating change is that it came about a month after Seaport Global downgraded Oceaneering and 50 other oil stocks after it threw in the towel on the oil market. However, with the oil market showing some signs of improvement, Seaport reversed its downgrade on Oceaneering after watching the stock jump nearly 10% in the month that followed its capitulating call on the sector. Image source: Getty Images. About a week later Oceaneering reported its second-quarter results, which were much better than analysts expected. Revenue came in at $515 million, which was 15% higher than the second-quarter of 2016 and beat the consensus estimate by more than $26 million. Meanwhile, the company eked out a small profit of $2.1 million, or $0.02 per share, which was not only an improvement from its year-ago loss of $0.08 per share but came in $0.03 per share ahead of expectations. Further, the company noted that it had inked several long-term contracts in the quarter, which should boost results in future periods. Though, the company stated that it still only expects to be "marginally profitable" this year. Now what The market had become a bit too bearish on Oceaneering, which at one point had fallen more than 25% this year. While it recovered some of that in July, it's still down about 8% this year and more than 60% since the downturn started three years ago. That suggests that there's more upside ahead as the market recovers, though it could be a slow climb because deepwater drilling is just starting to pick back up and could remain weak for a while given where oil is these days. 10 stocks we like better than Oceaneering InternationalWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Oceaneering International wasn't one of them! That's right -- they think these 10 stocks are even better buys. Click here to learn about these picks! *Stock Advisor returns as of August 1, 2017Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Oceaneering International. The Motley Fool has a disclosure policy.