Jim Cramer Discusses Energy Sector Stocks as Iraq Tensions Continue

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says he likes both EOG Resources  (EOG) and Schlumberger  (SLB), but he would take the latter for the long haul because of its amazing franchise that could last for multiple years.

Cramer thinks another company will acquire EOG because it has too many valuable assets, and companies such as Chevron  (CVX) and Exxon Mobil  (XOM) have to make a move on it.

Must Watch: Jim Cramer On the Energy Sector as Tensions Rise in Iraq

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TheStreet Ratings team agrees, as it rates Schlumberger as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate SCHLUMBERGER LTD (SLB) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."

Coal stocks spiked on Friday, and Cramer notes natural gas has some up so it's reasonable to say coal has some value, particularly Peabody Energy  (BTU); however he has stayed away from coal stocks for a long time and will continue to do so.

As for alternative energy stocks, Cramer likes SunEdison  (SUNE) and First Solar  (FSLR), and also notes SolarCity  (SCTY).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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