CNBC’s Jim Cramer recently reviewed the performance of oil service stocks following the release of earnings reports by major players in the sector. Cramer expressed confidence in the potential for gains in stocks such as SLB and Halliburton.
After analyzing the earnings reports, Cramer highlighted the strong international business and efficient rigs showcased by SLB and Halliburton. Both stocks experienced positive gains in the sessions following their reports, with Halliburton closing up by 4.33% and SLB up by 2.48%.
Cramer stated, “I think SLB and Halliburton deserve all of this upside and more. Yes, I think they can keep climbing. Yes, the growth outlook for the oil service industry is better than I thought going into earnings, primarily thanks to increased activity overseas.”
SLB’s earnings report revealed that its international business had delivered 10 consecutive quarters of double-digit growth. Additionally, the company raised its dividend by 10%, indicating management’s confidence in future success. Halliburton also reported a strong international business and expressed confidence in overseas production over the next few years.
Cramer expressed initial concerns about increased efficiency potentially impacting the performance of these oil service companies. However, Halliburton’s management addressed these concerns by explaining how they are maximizing returns from each well, leading to improved margins.
Overall, Cramer remains optimistic about the growth potential of SLB and Halliburton, emphasizing the positive outlook for the oil service industry, particularly driven by increased international activity.
For more insights into the discussion, you can watch the full video on CNBC’s platform.
