We recently published a list of Jim Cramer Looked At These 7 Stocks Recently. In this article, we are going to take a look at where Schlumberger Limited (NYSE:SLB) stands against other stocks that Jim Cramer recently looked at.
Jim Cramer, host of Mad Money, recently shared his perspective on a few oil service stocks and the impact of President Donald Trump’s pro-drilling agenda. While Trump has rolled out extensive plans aimed at boosting the oil and gas industry, Cramer said that oil service stocks might not see immediate gains as a result.
“The whole oil and gas industry loves a ‘drill, baby, drill’ White House, but doesn’t automatically take up the oil service stocks, or the producers for that matter. After listening to what SLB and HAL had to say over the past week, considering the macro environment and the new geopolitical factors, I think their stocks can work over time, just perhaps not necessarily right now.”
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Cramer further elaborated that President Trump’s public statements often feel like a non-stop “lightning round” of buys and sells. Wall Street, he said, enjoys the energy and excitement that comes with Trump’s rapid-fire ideas, even if they don’t always lead to actionable investment opportunities.
“If you’re a trader, Trump’s a dream come true. He generates a huge number of catalysts every time he talks. I don’t think most people should trade too hard unless you do it professionally, but this is heaven on earth for them.”
Cramer also pointed to historical examples, specifically drawing a comparison to President Ronald Reagan’s time in office. He recalled that Reagan’s vision of a 600-ship Navy led to significant profits for defense contractors. However, Cramer noted an important difference between Reagan’s and Trump’s approach: while Reagan’s statements were more measured, Trump’s style is fast-paced and unpredictable. Cramer sees this rapid-fire communication as both a challenge and an opportunity for market participants.
“I think we have to expect that President Trump will say something every day that gets a ton of coverage… We need to monitor these statements, but, look, we can’t expect all of them to generate actionable investing ideas, even if they do produce bullish animal spirits that boost the market.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on January 23. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Schlumberger Limited (NYSE:SLB)
Number of Hedge Fund Holders: 65
Comparing Schlumberger Limited (NYSE:SLB), the oil giant, and Halliburton, Cramer called SLB “the larger and more international of the two” and delved into SLB’s recently released earnings results.
Cramer noted that the stock rose in response to its strong fourth-quarter performance, highlighting better-than-expected results, particularly in North America. While the international segment met expectations, Latin America showed some weakness. Cramer pointed out that the vital takeaway was management’s cautious but not overly negative outlook for the future. He added:
“One analyst from JPMorgan called it better than feared and that sounds about right, at least to me. CEO Olivier Le Peuch, he noted that in the back half of 2024, his customers, meaning the oil and gas producers, ‘adopted a more cautious approach, primarily driven by concerns of an oversupplied oil market’. But then he added, ‘Although these concerns persist, we anticipate the oil supply imbalance will gradually abate’, citing global economic growth and a heightened focus of energy security coupled with rising energy demand from AI and data centers.
Yes! For this year specifically, Le Peuch said, ‘We expect global upstream investment to be steady in 2025 compared to 2024.’ For the smaller North American side of the business, he sounded less optimistic explaining that oil and gas activity is expected to decline due to lower publicly announced CapEx in U.S. land, higher drilling efficiency, and a slow recovery in gas until LNG capacity expansions are resolved. Now the stock’s still got a nice pop on these numbers and that commentary, gained 6% last Friday because the results were better than feared.”
Cramer pointed out that Schlumberger’s (NYSE:SLB) stock had dropped by 26% in 2024, and he viewed the most recent quarter as relatively neutral, particularly when it came to the North American business. While Cramer acknowledged that the company’s performance was not bad, he also felt it did not provide much in the way of optimism.
He noted that SLB had already given back most of the gains from last Friday’s rally, which he believed was reasonable given that the quarter was not awful, but it also did not offer much to get excited about. Cramer went on to say:
“Plus, while I think the oil service plays could remain challenged for a while, maybe the entire year, these stocks right now are incredibly cheap. SLB, 12 times this year’s earnings, 2.7% yield. Halliburton 10 times with a 2.4% yield. That said, it’s hard to predict when these stocks are going to bottom. Given how cheap they are though, I could count on starting a small position now as long as you prepare to go slowly, buy more on the way down, and accept that these are value plays, deep value.”
Overall, SLB ranks 2nd on our list of stocks that stocks that Jim Cramer recently looked at. While we acknowledge the potential of SLB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
