Facebook is Still Cheap Here, Jim Cramer Says

Stock is only selling at 20 times 2019 earnings estimates.

Author:: TheStreet Staff
Publish date:: Jul 13, 2017 4:24 PM EDT

Facebook (FB) - Get Report may be on an upward tear, but the stock is nonetheless still cheap, Jim Cramer says.

"Facebook is supposed to earn about eight bucks, according to my calculations, in 2019," Cramer said during an exclusive conference call with members of his Action Alerts PLUS club for investors. "So, the stock is at $158, [or] 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.

Want to join in on Jim's monthly conference calls? Click here for 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.

This article was written by a staff member of TheStreet.