Halliburton Company

(New York Stock Exchange)
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Somewhat Bullish +30

Jim Cramer on Halliburton: “It’s Been a Good Stock Even in a Bad Oil Market”

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Jim Cramer praised Halliburton (NYSE: HAL) as a strong performer even during periods of poor oil market conditions.

Cramer described the stock as inexpensive and noted it has been profitable in both good and bad oil environments.

The article reports that Halliburton's stock price increased by over 91% following Cramer's earlier comments about its potential bottom.

Cramer cautioned that domestic drilling activity may be limited despite presidential pro-drilling rhetoric, affecting Halliburton's outlook.

Global markets have shown resilience despite geopolitical conflicts in the Middle East and elevated oil prices.

Jim Cramer warned of potential market risks stemming from a correction in overvalued AI infrastructure stocks like AMD and Micron.

The article highlights concerns about widespread white-collar job losses driven by artificial intelligence automation efficiency.

Cramer advises investors to prepare for a possible market meltdown through strategic asset allocation and diversification.

He recommended adjusting portfolios toward defensive sectors such as healthcare and defense to manage risk tolerance.

Rolls-Royce was mentioned as a potential buy opportunity at a discount due to its exposure to long-term growth in defense and nuclear markets.

NATO countries are projected to significantly increase defense spending between now and 2035, providing tailwinds for engine manufacturers.

Rolls-Royce recently signed a major deal with CEZ Group to build a small modular reactor unit in the Czech Republic.

The article suggests investors should have a strategic plan ready to purchase quality stocks if market pullbacks create opportunities.

U.S. stock futures indicate a muted opening as markets wait for further direction following recent declines.

Investors are closely watching the upcoming Federal Reserve policy announcement later in the day for future monetary policy signals.

Market data suggests that investors are pricing in a third consecutive pause in interest rate hikes at the next Fed meeting.

Bullish Signals
  • Jim Cramer described Halliburton as a good stock even in a bad oil market, suggesting strong underlying performance despite industry headwinds.
  • Cramer noted that Halliburton continues to be very inexpensive, indicating significant potential upside for investors looking at the stock.
Risk Factors
  • Jim Cramer explicitly states he cannot recommend Halliburton (NYSE:HAL) because domestic drilling in the U.S. has not lived up to expectations despite political rhetoric, with oil prices having fallen significantly.
  • The stock's yield of approximately 3.25% is described as a potential 'bottom,' suggesting limited upside from this current valuation level according to Cramer's assessment aired on April 11, 2025.
  • Jim Cramer warns that Halliburton could face further pressure if the domestic drilling sector fails to rebound despite prior policy encouragement to 'drill, baby drill'.
  • Broader market risks include a potential sharp fall in AI infrastructure stocks like AMD, Micron, and SanDisk, which have soared over 50% recently and could crash, impacting the overall market.
Full Analysis
Jim Cramer discussed Halliburton Company (NYSE:HAL) on his show Mad Money, highlighting its resilience as an investment even during challenging oil market conditions. In a conversation with a caller, Cramer expressed strong personal enthusiasm for the stock, describing it as "inexpensive" and noting that it has performed well in both good and bad oil environments. However, during a later segment on April 11, 2025, he tempered his investment advice by citing structural headwinds: he argued that domestic drilling activity remains subdued despite political rhetoric, with the current yield likely around 3.25%. Cramer explicitly stated at that time that he could not recommend buying the stock because he believed the company's prospects were tied to a drilling environment that was "not happening" due to lower U.S. oil prices. Notably, the text points out that Halliburton's stock subsequently rose over 91% following this specific on-air comment, contrasting with Cramer's cautionary tone. Beyond the specific discussion on Halliburton, Jim Cramer also analyzed broader macroeconomic risks facing the global stock market. He expressed concern about a potential sharp downturn driven by two main AI-related factors: a possible crash in high-flying AI infrastructure stocks like AMD, Micron, and SanDisk, which have all gained more than 50% over the last month, and significant job losses in the white-collar sector due to technology efficiencies. Cramer cited research from Citrini Research, highlighting that firms like Meta Platforms are currently laying off one in ten of their staff, raising questions about whether unemployment levels could reach 10-15% in coming years. While acknowledging the market's recent resilience near all-time highs and the short-lived nature of geopolitical downturns, he warned investors to prepare for a potential meltdown through proper asset allocation and diversification into defensive sectors like healthcare and defense. In his strategy for a market pullback, Cramer identified Rolls-Royce (LSE:RR) as a specific name on his list of stocks to buy if the market falls. He acknowledged near-term headwinds, such as airlines cutting back flights which could impact engine servicing revenues, but emphasized strong long-term growth potential driven by increased NATO defense spending through 2035 and expansion in the small modular reactor (SMR) nuclear market. Cramer noted that Rolls-Royce recently signed a major SMR deal with the CEZ Group to build a unit in the Czech Republic. The article concludes with context on U.S. stock futures suggesting a muted opening amid uncertainty ahead of a Federal Reserve policy announcement, which markets fully price in as a pause in interest rates for a third consecutive meeting.