Jim Cramer Says Investors Need to Own Apple, Not Trade It

NEW YORK (TheStreet) -- Investors need to own Apple (AAPL) if they want exposure to the company, not trade it, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Cramer's Mad Dash" segment. 

Shares of the tech giant are 3.57% lower on Monday. They declined rapidly in early trading, falling over 6% in a matter of minutes before recovering. There was no immediate reason for the selloff, which some attributed high-frequency trading

Analysts continue to boost their price targets on Apple as the stock marches higher longer-term. Cramer pointed out that Barclay's recently raised its price target to $140 from $120.

And while he doesn't doubt Apple and its products, Cramer said investors should look for the stock to boost earnings per share to justify the higher stock price, rather than counting on multiple expansion. 

Multiple expansion theory is "not solid fundamentals," he said. Instead, investors should be paying the same valuation for the stock, but with the company generating higher earnings per share. "That's a real bull market," Cramer added. 

Turning to agriculture, Deere (DE) caught several analyst upgrades on Monday. If investors believe commodity prices are headed lower, then Deere is not a good stock to be in, he noted. 

However, if commodities are near a bottom, then Deere is a stock that could make a comeback. Also, AGCO Corp. (AGCO) is "dirt-cheap," Cramer said. 

- - Written by Bret Kenwell

Follow @BretKenwell

At the time of publication, Cramer's Action Alerts PLUS held AAPL.

More from Opinion

It's Dumb to Think Legalizing Weed Is Still a Political Issue

It's Dumb to Think Legalizing Weed Is Still a Political Issue

AAP Exclusive: Cramer Says The President is No Longer on the Side of the Bulls

AAP Exclusive: Cramer Says The President is No Longer on the Side of the Bulls

Why It Makes Perfect Sense for Netflix and Amazon to Buy Up Movie Theaters

Why It Makes Perfect Sense for Netflix and Amazon to Buy Up Movie Theaters

2 More Reasons to Sell All Your Stocks and Run Away

2 More Reasons to Sell All Your Stocks and Run Away

Sean Hannity's Link to Trump Lawyer Raises Questions: Doug Kass Insider

Sean Hannity's Link to Trump Lawyer Raises Questions: Doug Kass Insider