Google's Still Cheap

A note from Lehman underscores how much higher this stock could go. Cramer's sticking with $350.
Author:
Publish date:

Google's

(GOOG) - Get Report

cheap.

OK, I said it.

If Google can do the

2007 number Lehman

put out this morning -- $9.38 EPS -- you are talking about a stock that's just plain inexpensive. You would be buying this company at less than 1 times its growth rate of 33%.

That's nutty cheap.

If you use the

Yahoo!

(YHOO)

comparison, it should sell at $500 now.Of course, Yahoo! could be overvalued, so you could go wrong with that.

Image placeholder title

But as I read through this Lehman estimate bump, I am blown away at the earnings power of this money machine.

The stock goes higher.

I am sticking by my $350 target, though, as I think that $7.00 next year --not $7.53 as Lehman says -- is still more realistic until I know more.

P.S. from TheStreet.com Editor-in-Chief, Dave Morrow:

It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our

free trial offer

to TheStreet.com

RealMoney

premium Web site, where you'll get in-depth commentary

and

money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice --

try it now.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS by

clicking here. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict."