Jim Cramer Looked At These 7 Stocks Recently

5. Halliburton Company (NYSE:HAL)

Number of Hedge Fund Holders: 38

Talking about Halliburton Company (NYSE:HAL), Cramer said:

“So what about Halliburton, which reported yesterday morning? Alright, well, Hal’s stock is simply beaten down having fallen almost 25% last year. It didn’t get an SLB-style bounce yesterday. In fact, it lost another 3.6% and then today it got hit for another 1.8%. Why? Well, Halliburton had mixed headline numbers. Revenue was down 2% year-over-year, slightly lower than expected. Well, the earnings only beat estimates by a penny.

Halliburton is much more levered to North America than SLB and right now, that’s hurting them as North American revenue fell 7%. Even the international business was up 3%. But North America’s where the action is for these guys. Looking forward, Halliburton says it expects flat international revenues in 2025 with Halliburton CEO Jeff Miller saying, ‘growth in most international markets offset by activity reduction in Mexico.”

Cramer pointed out that Halliburton (NYSE:HAL) is seeing positive global prospects, except in Mexico. While North America has a promising long-term outlook, the company expects a decline of low to mid-single digits in 2025. Cramer emphasized that pricing pressures in the U.S. are making the situation worse, though Miller remains optimistic about the company’s future. Cramer remarked:

“Miller knows that after conceding and giving those price breaks I just mentioned, Halliburton’s now sold out with all of its fleets working under committed or contracted programs. Good. He also mentioned some new technologies including Zeus, the company’s new electric fracturing pumping unit. That’s a fracking tool. And this is the part that I like best, Miller explained, ‘I believe the next catalyzing inflection from North America services will be up, not down.

I believe the most pressing energy problem in North America today is the power shortage driven by the electrification and power demand for AI and this cannot be solved without significant amounts of natural gas.’ I totally agree with him. He goes on to say, this is on top of the expected increases in LNG exports. These are all very good things for Halliburton in 2025. Same story as SLB. I think it’s compelling even if it will take time to play out.”

Cramer noted that while oil service stocks like SLB and Halliburton (NYSE:HAL) may remain under pressure this year, they are currently trading at very low valuations, with SLB priced at 12 times earnings and a 2.7% yield, and Halliburton at 10 times earnings with a 2.4% yield. Though it’s hard to predict when these stocks will bottom out, Cramer suggested starting a small position now and adding more gradually, treating them as deep value plays that require patience.