CNBC’s Jim Kramer advised investors on Wednesday to buy Halliburton Stocks on the decline after a less-than-ideal quarter of an industry peer Baker Hughes.
Cramer said that although Halliburton posted “fantastic” results, the stock took a hit after rival Baker Hughes posted a poor quarter.
“I think you should take advantage of this rare opportunity to buy the best stocks in weakness, which is exactly what we did for the Charitable Trust,”mad money‘ said the host.
Cramer’s Company Calls “Best Giant of the Breed” Beat Wall Street Predictions in first-quarter earnings on Tuesday. Baker Hughes lost expectations in its last quarter, which Cramer said caused the rest of the industry, including Halliburton, to tumble.
Halliburton shares fell 4 percent on Wednesday.
Here are some of Cramer’s key points from Halliburton’s quarterly results and earnings calls.
- The company raised customer spending expectations. “The only thing that worries me here is that even though the price of crude oil has gone up, local oil producers have been very disciplined about putting in new money. … But the industry can only be very disciplined with oil at more than a hundred dollars,” Cramer said.
- According to HAL, the oil and gas industry is now prioritizing investment in shorter-cycle investments. “That’s great for Halliburton, because these short-cycle projects are like bread and butter,” he said.
- Cramer believes Halliburton is on track for further growth in the next two years. Cramer’s Investing Club raised the company’s price target to $45, nearly 18.4 times its fiscal year 2023 earnings forecast.
Disclosure: Cramer Charitable Fund owns shares in Halliburton.
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