Jim Cramer’s Must-Watch List: 10 Stocks to Look After

1. Schlumberger Limited (NYSE:SLB)

Number of Hedge Fund Investors: 67

Jim Cramer praised Schlumberger Limited (NYSE:SLB), describing it as an “amazing company.” He recalled his own experience from 1983 when he interviewed for a job at Schlumberger Limited (NYSE:SLB) and was told he lacked the necessary knowledge. Cramer took that feedback seriously but now views Schlumberger Limited (NYSE:SLB) as a highly undervalued stock. He believes that, despite his past experience, Schlumberger Limited (NYSE:SLB) is a great investment opportunity and advised against selling the stock at its current level.

“Schlumberger  is an amazing company. I actually interviewed with SLB in 1983 for a job, and they told me to get the hell out because I didn’t know anything. I took that as gospel. I do think that Schlumberger is a very inexpensive stock, and I would not sell it down here.”

Schlumberger Limited (NYSE:SLB) is a strong investment opportunity due to its solid financial performance, growing international presence, and strategic focus on digital and energy transition projects. In Q2 2024, Schlumberger Limited (NYSE:SLB) saw a 5% increase in revenue, reaching $9.1 billion, thanks to a 6% rise in international revenue, especially in the Middle East and Asia.

Schlumberger Limited (NYSE:SLB) also reported an 11% increase in adjusted EBITDA and earnings per share (EPS) of $0.85, showing growth both from the previous quarter and year-over-year. Operating margins improved by 135 basis points to 20.3%, and its digital and integration divisions achieved 31% margins. Schlumberger Limited (NYSE:SLB)’s emphasis on deepwater offshore projects and energy transition technologies, along with a 10% increase in digital revenue, highlights its strong position for future growth. With strong financials, expanding margins, and a forward-looking strategy, Schlumberger Limited (NYSE:SLB) is well-positioned for continued success.

While we acknowledge the potential of Schlumberger Limited (NYSE:SLB), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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