Jim Cramer on Costco: “I Think They’re Doing Everything Right”

Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer shared his views on. When a caller expressed worry over the stock price action, Cramer remarked:

“Well, you know what, I am glad you called me on Costco. I was just, I was actually kind of mulling over this one with Jeff Marks, my colleague on the club, and I have to tell you, I am sick and tired of the stock going down. People feel 51 times earnings is too expensive. I think that’s wrong. I think they’re doing everything right. Every check indicates to me that it’s time to start buying some if you don’t have any, and if you have some, perhaps you should buy some more.”

omar-abascal-9Um7Huux0as-unsplash

Costco (NASDAQ:COST) operates membership-based warehouse stores that provide branded and private-label goods across grocery, general merchandise, and specialty services. In addition, the company offers e-commerce, fuel, pharmacy, and travel services under the Costco brand. When a caller inquired about the company stock on July 17, Cramer responded:

“No, look, here’s the problem with Costco: It is a victim of its own success. All it really does is ever go up and then has these periods where it languishes. We’re in the languish period. That’s when you buy Costco. Do I think Costco’s in trouble at 50 times earnings? Are you kidding me? I think Costco’s, I still think Costco may be… one of the top five companies of all time. That is no slight to Jensen Huang because he’s number one.”

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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