Jim Cramer loves Twilio (TWLO) - Get Report even though it has an astounding 1,297 forward price-to-earnings ratio based on 2019 earnings estimates, and he also thinks Shopify (SHOP) - Get Report is great despite that stock's 557 2019 forward P/E. How does Jim decide which high-P/E stocks to buy and which to avoid?
Jim used his latest monthly video-conference call Wednesday to unveil the process he uses to pick such "super-high-growth" stocks.
"You have to have the guts to say: "My homework is right, the market is wrong,'" Cramer said. "That's something that's so hard to do that you need an incredible amount of fortitude to pull it off."
Club membership includes exclusive access to Cramer's private video-conference calls each month, in which Jim gives his latest market outlook and answers e-mailed questions from club members. Membership also includes lots of other great benefits, including:
- A complete rundown of all of stocks that Jim holds his charitable trust;
- E-mail alerts that give you a chance to buy or sell any stock before Jim makes a trade for the trust;
- Custom research throughout each trading day from Jim and his team of stock-market analysts. You get to see what Jim is watching every market day as he and his team make investment decisions.
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