view transcript

how about Apple, isn't that like Facebook? I would say, no, unlike Facebook, which had been selling at 25 next year's earnings, Apple, even after last week's gallop, is selling at just 15 times earnings. While you have to show great scrutiny, its been our hallmark not to trade Apple but to own it because it doesn't get the recognition it is due. Yes I am concerned about a possible boycott of Apple I-phones in China as part of a retaliation by the PRC against President Trump's policies. Right now, though it's just a threat a threat worth monitoring but not worth selling for.


Oh, and as much as Apple's stock has gone higher, the consumer packaged goods stock sector that I consider it to be a part of has actually advanced even more than Apple. Clorox, which is hoping to grow 2-4% this year-Apple is growing double digits-sells at 20 times earnings. A company that makes the most basic of all products, Chlorine Bleach, a company that grows much more slowly than a company that makes the most sophisticated consumer product ever manufactured trades at a much higher price to earnings multiple? What's wrong with this picture.

By that math, Apple should be at least two turns higher and therefore has a lot more room to run.

In the August Action Alerts PLUS members' call, Jim Cramer is just dumbfounded that Clorox (CLX)  ....a company that makes the most basic of all products, chlorine bleach...trades at a much higher price to earnings multiple [than Apple (AAPL) ]? What's wrong with this picture?" he asks.

He firmly believes that Apple -- "a company that makes the most sophisticated consumer product ever manufactured" -- should be trading at a much higher multiple.

Watch his explanation of it all now.

For more on Action Alerts PLUS holding Apple, click on the links below:

Do you want more exclusive investing insight from Cramer? Get 24/7 access to Jim's charitable-trust portfolio with a free trial to Action Alerts PLUS! You can also watch all of Jim Cramer's New York Stock Exchange live shows on YouTube.