Jim Cramer Discussed These 11 Stocks and Recent Market Rotation

3. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 88

Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer discussed, along with recent market rotation. Cramer discussed the stock’s unsatisfactory performance last year and recent expectations, as he commented:

“Or how about Costco versus Walmart?… How about Costco?… Well, first, it lost its long-standing CFO, Richard Galanti of more than 38 years. He was the heart and soul of Costco. He knew pricing, knew merchandise, knew the customer like no other CFO and most CEOs. Second, the renewal rates after a steady as she goes upward march finally faltered, growing more slowly, certainly more slowly than the Street was looking for. For that, we were paying more than 50 times earnings early last year? Come on. So, of course, this stock just got clobbered, becoming an almost permanent denizen on the 52-week low list by late last year. While the S&P 500 was up 16%, Costco stock actually declined, 6%. But since the new year began, oh, it’s a different story.

Walmart’s done nothing while Costco’s stock has rallied from $862 to $915, including a monster 3.7% gain today after some good numbers last night. And I don’t think it’s done. Earlier this week, I told you that Larry Williams, the great technician, said Costco is a screaming buy. That number that they got last night, much better than expected monthly sales. I liked every single bit of it. The comparable sales accelerated in December, with digital stepping up versus November. The year-over-year number showed a terrific gain. It was the best beat from the company that I’ve seen in quite a while. I think the estimates are now too low. I think we’re going to see a host of earnings, bumps, and price target increases. Costco, I like it.”

Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and provides groceries, fresh food, household goods, electronics, and more. In addition, the company offers various services through pharmacies, gas stations, optical centers, and e-commerce options.