Anyone who follows Cramer probably wasn’t surprised by Core Labs’ strong quarterly report Wednesday afternoon. He sees dividend increases as a sign of a strong business, and that’s just what the oil-service company did very early this year, upping its payout by 20%. Sure enough, Core Labs followed up on that de facto promise of outperformance by delivering better-than-expected numbers across the board.
The stock responded in kind, with CLB joining a select group that hit their 52-week highs on Wednesday. And the share price has jumped 20% since Cramer recommended Core Labs back on Feb. 9on the heels of that dividend boost.
Big moves or not, though, he still likes this stock. CLB isn’t as cheap at Weatherford , another Cramer fave, but “it’s arguably higher quality,” he said, “because of its dividends and growth prospects regardless of the price of oil.” And this winner has a habit of outperforming the averages, soaring 87% over the past year versus a mere 12% gain for the S&P 500. Over the past five years, those numbers widen exponentially, with CLB returning 497% versus a 12% loss for the S&P.
So what’s next for Core Labs? Cramer invited Chairman and CEO David Demshur onto the show to find out. Watch the video for the full interview.
When this story published, Cramer’s charitable trust owned Weatherford International.
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