CNBC anchor and former hedge fund manager Jim Cramer has a large following because of his past success as an investor and for his media personality. Cramer’s charitable trust occasionally reports its stock positions, which includes a mix of value, growth, and income investments. We have gone through the most recent data on the trust’s holdings and here are five stocks it owns with trailing P/E multiples over 20 (implying that Cramer believes these stocks will achieve strong growth in order to justify the stock price):
Broadcom Corporation (NASDAQ:BRCM) trades a 27 times trailing earnings, but sell-side analysts believe that the $21 billion market cap communications technology company will do well over the next several years. Based on their consensus estimates, the forward P/E is 12 and the five-year PEG ratio is 0.9. As such, Broadcom is a classic growth stock: expensive on the basis of its current performance but potentially cheap when considering what its results will be in the future. Broadcom did grow its revenue 10% last quarter compared to a year earlier, though its earnings were actually down. However, Cramer seems to be on board with the sell-side in expecting strong performance. To see the full list of Jim Cramer's charitable trust's top stock, please visit Insider Monkey.