8 Cheap Jim Cramer Stocks to Invest In

3.  Schlumberger Limited (NYSE:SLB)

Forward P/E: 12.64

Number of Hedge Fund Holders: 67

Schlumberger Limited (NYSE:SLB) has been called “the best of breed” by Cramer. Here’s what he had to say:

“SLB has not gone up nearly as much as I would’ve expected. Given the fact that oil’s up, I would buy the stock right here. It is the best of breed.”

Schlumberger (NYSE:SLB) is a key player in the energy sector, focusing on carbon management and the integration of various energy systems to address the complexities of today’s energy landscape. In September, the company made significant strides in sustainable lithium production, announcing the successful demonstration of its innovative solution at a plant in Clayton Valley, Nevada. The development is focused on expediting the market introduction of responsibly sourced lithium products.

The proprietary integrated solution merges its expertise in subsurface management with advanced surface engineering technologies, including direct lithium extraction (DLE). The method allows for lithium production at a rate 500 times faster than traditional techniques while utilizing just 10% of the land typically required. Operating at approximately one-tenth the size of a conventional facility, the demonstration plant achieved a verified recovery rate of 96% lithium from brine.

The entire process, from extraction to conversion into technical-grade lithium carbonate, takes only a few hours, in stark contrast to evaporation methods, which can take up to 18 months and often yield recovery rates of 50% or less. By reaching specific technical milestones during this pilot phase, Schlumberger (NYSE:SLB) positioned itself to fully qualify under an earn-in agreement with Pure Energy Minerals Ltd., allowing for the potential acquisition of 100% ownership in the Clayton Valley Project.

On October 16, Barclays lowered the price target on the company stock to $63 from $67 and kept an Overweight rating as part of a preview for Q3 earnings in the energy services sector. Analysts at Barclays believe there is limited downside risk to estimates, suggesting that existing macroeconomic concerns and low expectations are already reflected in the group’s discounted valuations. With the outlook for 2025 resembling that of 2024, the potential for outperformance will rely on the differentiation of businesses and themes that improve earnings visibility in a low-growth environment.