Apple Inc (AAPL) and Jim Cramer’s Other Tech Picks

Apple Inc (NASDAQ:AAPL) is many investors’ favorite stock. Jim Cramer has been a long time Apple Inc (NASDAQ:AAPL) fan. Former hedge fund manager and television host Jim Cramer operates a charitable trust which tends to invest in a diversified portfolio of stocks. The portfolio includes growth, value, and income stocks across a range of sectors. We have gone through the most recent disclosed positions and here are Jim Cramer’s five favorite technology stocks:

Jim Cramer

The trust owned 3,200 shares of Lam Research Corporation (NASDAQ:LRCX), a $6.5 billion market cap manufacturer of equipment that is used in turn to manufacture semiconductors. Its most recent quarter, which ended in September, was decent news: while earnings were down 96% from the same period a year earlier, this actually beat estimates and caused the stock to rally from its decline in 2012. It is now down 3% year to date. Lam, which had also delivered strong revenue growth, trades at 10 times forward earnings estimates as Wall Street analysts expect considerably better numbers next year. Billionaire Leon Cooperman’s Omega Advisors liked the stock last quarter, increasing its position to 1.2 million shares. We would like to see better numbers from the company to convince us it can hit the trajectory set by analysts.

Apple Inc. (NASDAQ:AAPL) was the most popular stock among hedge funds in the second quarter of 2012 according to our database of 13F filings (see the full rankings) and Cramer is a fan of it as well as his trust owned 175 shares. Apple Inc (NASDAQ:AAPL) is encountering increased competition from a relentless Amazon, a desperate Microsoft, and an ambitious Google but still has a strong brand name and market position. It also trades at a trailing P/E of 15, which seems rather low given all the other favorable characteristics of the stock. Analyst consensus implies a forward P/E of 12 and a five-year PEG ratio of 0.6. Even if its growth slows Apple (NASDAQ:AAPL) should still be a good value at current prices.

Cramer’s trust disclosed a position of 3,900 shares of EMC Corporation (NYSE:EMC). EMC is a data storage and information software company with a market capitalization of just over $50 billion. Its trailing P/E is 21, but sell-side analysts expect the company to grow its earnings in the next several quarters and their estimates for 2013 imply a forward P/E of 13. Its earnings were up 19% in the second quarter compared to the second quarter of 2011, based on revenue growth and higher margins. We’re a bit wary of the degree to which EMC is depending on growth over the next few quarters to justify its valuation, but we wouldn’t consider it overpriced either.

Broadcom Corporation (NASDAQ:BRCM) was another of the trust’s holdings in the tech sector, with a position of 2,700 shares. Broadcom provides semiconductor products which enable video and voice communications as well as general data transfer. Its business has been struggling recently, with net income lower in the second quarter than in Q2 2011 despite a better top-line, but analysts expect higher earnings in 2013 and so Broadcom carries a forward P/E of only 11 and a five-year PEG ratio of 0.8. We’re cautious of such rosy estimates, and think that other stocks on this list are better values .

Another of Cramer’s top tech stock picks was eBay Inc (NASDAQ:EBAY) as his trust owned 1,800 shares of the auction site and owner of Paypal. These businesses have been driving eBay’s financials higher, as in the third quarter the company saw double-digit growth rates of both revenue and net income compared to the same period in 2011. eBay trades at 17 times trailing earnings; it’s not quite as attractive as Apple, but we think it should continue to deliver good earnings growth and is therefore a good value play. Read our most recent analysis of eBay.

Disclosure: No positions in Apple Inc (NASDAQ:AAPL) or any other stocks mentioned in this article.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!