Jim Cramer Recommends Buying Costco Wholesale (COST) Shares, Says It’s His ‘Longstanding’ Position

We recently published a list of Jim Cramer’s Latest Lightning Round: Top 10 Stocks. In this article, we are going to take a look at where Costco Wholesale Corp (NASDAQ:COST) stands against other top stocks that Jim Cramer discusses in latest lightning round.

Jim Cramer in a latest program on CNBC reiterated his view that the market volatility stems from President Donald Trump’s ever-changing policies and temperament that often spooks investors. He also talked about the increasing chances of recession:

“The stock market matters as a bellwether for the country, not just as a wealth creator. You can gauge the country’s mood from the market, and as of Thursday, it was correcting itself from a positive attitude to a negative one, from an exuberant one to a solemn one, and that’s how you get a recession. Now, it might be true that the old Trump created too much enthusiasm, and that enthusiasm could have led to the euphoria … before COVID hit, he presided over a fantastic economy with great job growth, no inflation, and he did it lightly. He did with a smile. He was consistent in the optimism and his get it done attitude. I miss that President Trump. This new second term President Trump is angry, lashes out especially on Truth Social, and his approach is so inconsistent that it frightens all sorts of business owners to the point where they don’t know what to do. They can’t get their heads around this moly front trade work. They thought they had a friend in the White House, but suddenly it’s like they have an enemy who seems upset and angry with them. The president expressed his fury, and all sorts of workers from all sorts of businesses, many of them voted for them, are worried about their jobs.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

In this article we picked 10 stocks Jim Cramer was talking about in his latest programs. With each company we have mentioned its latest hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Costco Wholesale Corp (NASDAQ:COST)

Number of Hedge Funds Investors: 75

Jim Cramer in a latest program on CNBC affirmed his bullish views on Costco Wholesale Corp (NASDAQ:COST) despite the selloff following the company’s latest quarterly report.

“One stock I am a buyer of, though, is Costco, which reported excellent numbers last night and still got obliterated. Wait until Tuesday and then buy some—all the sellers will probably be done. It’s a long-standing position for my charitable trust. I actually want to buy more—I haven’t wanted to do that in a very long time. After the close—and by the way, it did not miss earnings. That’s just wrong. Those are people who don’t know how to read Costco’s report. I do.”

Aoris Investment Management stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2024 investor letter:

“Firstly, I think we exercised good valuation discipline in our sales of Costco Wholesale Corporation (NASDAQ:COST) and Cintas. The share prices of these two companies had increased by more than 60% and 40% respectively in the year prior to our sale. It can be difficult as investors to remain objective and not ‘fall in love’ with an investment when it is performing well. A higher share price doesn’t make a business more valuable!

We sold both Costco and Cintas simply for reasons of valuation. These are exceptional businesses that we’d love to own again if valuation permits. Their sales allowed us to recycle portfolio capital into more attractively valued businesses.”

Overall, COST ranks 4th on our list of top stocks that Jim Cramer discusses in latest lightning round. While we acknowledge the potential of COST, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.