Buy the dip on ‘best-of-breed stock’ Halliburton, Jim Cramer states

CNBC’s Jim Cramer on Wednesday encouraged financiers to purchase Halliburton stock while it’s down after a less-than-ideal quarter from market peer Baker Hughes.

Cramer stated that though Halliburton published “fantastic” results, the stock got struck after competitor Baker Hughes published a bad quarter.

“I think you’ve got to use this rare opportunity to buy a best-of-breed stock on weakness, which is exactly what we did for the Charitable Trust,” the “Mad Money” host stated.

The business Cramer calls a “best-of-breed colossus” beat Wall Street expectations in its first-quarter incomes onTuesday Baker Hughes missed out on expectations in its newest quarter, which Cramer stated dragged down the remainder of the market’s business, consisting of Halliburton.

Halliburton stock fell 4% on Wednesday.

Here are a few of Cramer’s crucial takeaways from Halliburton’s quarterly outcomes and incomes call.

• The business raised its client costs projection. “The one thing that’s worried me here is that, even though the crude price has skyrocketed, domestic oil producers have been very disciplined about putting new money to work. … But the industry can only be so disciplined with oil at over a hundred bucks a barrel,” Cramer stated.
• According to HAL, the oil and gas market now focuses on investing in shorter-cycle financial investments. “That is fabulous for Halliburton, because these short-cycle projects are like bread and butter,” he stated.
• Cramer thinks Halliburton is on track to grow a lot more in the next number of years. Cramer’s Investing Club raised its cost target for the business to $45, which is around 18.4 x incomes expectations for 2023.

Disclosure: Cramer’s Charitable Trust owns shares of Halliburton.

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