Jim Cramer Says Buy Any Dip in Oil Stocks; Here Are 3 Names Analysts Like

Stocks have sold off heavily since the start of this year, with a 14% decline in the S&P 500 and a bearish 22% drop in the NASDAQ. But while the selloff is broad-based, it’s not affecting everything. Oil stocks have proven resistant to the downward trend, buoyed by high prices for crude at the wellhead and gasoline at the pump. And with summer driving season underway to goose demand, and inflation rising steadily, we can expect that the high energy prices will continue for the foreseeable future.

The result is an environment in which investors need to be wary – and need to be ready to jump on any opportunity. Normally, in a stock market downturn, investors will take their chance to ‘buy the dip,’ and pick up favored equities at low cost, trusting that the market will bring gains down the line, long-term. But Jim Cramer, the well-known host of CNBC’s ‘Mad Money’ program, sees this as a poor recipe given today’s mix of market ingredients.

In recent comments on market strategy, Cramer said, “I want to be kind to this market and tell you it’s the same old buy the dips game plan. But in reality, the only dip that can be bought right now, at least, is the dip in oil.”

Of course, oil hasn’t dipped yet. Oil stocks remain high. But Cramer is suggesting a readiness strategy for investors, to keep a sharp watch for any potential dip in oil stocks. In his view, “[The] lesson is simple: Just get long on some oil stock.”

With this in mind, we’ve used the TipRanks database to pinpoint three oil stocks that are considered ‘Strong Buys’ by the consensus of the Wall Street analysts. Not to mention considerable upside potential is on the table here. Let’s take a closer look.

Matador Resources Company (MTDR)

The first oil stock we’re looking at is Matador Resources. Operating in several energy reserve regions in New Mexico, Texas, and Louisiana, this company focuses on unconventional plays in the North American hydrocarbon industry. Matador engages in exploration, development, and extraction activities, mainly in oil and liquids-rich formations….


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