Shares of Schlumberger (SLB) - Get Schlumberger NV Reportare down 8.5% on the year and more than 5% over the past 12 months. Investors are hoping the stock's woes can be turned around when the company reports earnings on Friday before the open.

Last time the company reported earnings, management was very upfront. They were realistic and told investors that there's still a down cycle in oil, TheStreet's Jim Cramer, manager of the Action Alerts PLUS portfolio, said from the floor of the New York Stock Exchange Thursday.

Every time oil prices climb, it forces U.S. oil producers to increase production and sell their oil through the futures market. This weighs on oil prices after crude prices rally, Cramer explained.

While Schlumberger has remained somewhat downbeat, there's a silver lining here too: The company was one of the first to see this cycle coming. It allowed Schlumberger to lay off workers, cut costs and as a result, it's now profitable in the current environment.

Shares should not be sold, Cramer reasoned, but does that mean they should be bought?

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Cramer said he's negative on oil in the short-term and could see more downside ahead. For that reason, he and the Action Alerts PLUS team had trimmed their oil stock exposure - like Schlumberger, which is a holding in the portfolio - when oil prices rallied.

On a further decline, it would be opportunistic to add back to those positions, Cramer concluded.

Analysts expect Schlumberger to earn 25 cents per share on $6.99 billion in revenue for the most recent quarter.

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At the time of publication, Cramer's Action Alerts PLUS had a position in SLB.