Facebook is up 38.11% year-to-date, growing steadily ever since it got off to a rocky start in its first few years on the market. Despite those sky-rocketing returns, Cramer's calculations suggest there is still room to grow.
"Facebook is supposed to earn about eight bucks, according to my calculations, eight bucks in 2019," Cramer said during a web conference with Action Alerts PLUS members Wednesday, July 12. "So the stock is at $158 - 20 times 2019 earnings is too cheap, so I am saying that you should own Facebook."
Analysts estimate that Facebook will post earnings-per-share of about $7.55 in 2019, according to FactSet, with estimates ranging from $5.70 on the low side to $8.57 at the ceiling.
Advertising is projected to lead the boom, with mobile advertising in particular expected to drive profits for the company. Mobile advertising, which represented $22 million in revenue for the company last year, could more than double to $54 million in 2019, if analyst estimates are correct.
Cramer said that investors may still want to trim the holding from their portfolios if they want to secure a profit, as the rapid ascent of the stock may have led some shareholders to be overly weighted in the tech company.
"Nobody ever got hurt taking a profit," he said.
Facebook's shares rose 0.2% to $159.26 by Thursday's close.
Want to join in on Jim's monthly conference calls? Clickherefor a free 14-day trial subscription to Action Alerts PLUS and hear all of this month's call, plus get e-mails before Jim makes any trade and enjoy lots of other exclusive material.
Visit here for the latest business headlines.
Editors' pick: Originally published July 13.