Jim Cramer on Costco: “We Would Have Sold All of It, But the Company’s Too Good”

Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer offered insights on. Cramer discussed the trust’s position in the stock, as he remarked:

“We sold some Costco for the Charitable Trust. Frankly, we would have sold all of it, but the company’s too good… I was about to dump the whole rest of the position… when Larry Williams, the legendary technician and market historian, wrote me and said it was time to buy Costco. As much as I don’t like to stick with a stock that slides endlessly, I also don’t like to bet against Williams… Let’s take a look at what he sees. Alright, first take a look at this weekly chart. The blue line near the bottom is Williams’s proprietary valuation gauge… Currently, it reflects that Costco stock is undervalued… Now, go down further, and you see the red line, which is Williams’ measure of professional accumulation… Put it all together, and he thinks that Costco’s just like a coiled spring waiting for the right moment to soar higher and it was not necessarily today even though it was a good day for Costco but when you see this it’s very rare… Now Larry’s cycle forecast suggests that the stock is ready to roar… In other words, the short-term cycle indicates that the next five months should be pretty darn good for Costco…

Here’s the bottom line: Even though Costco has been a painful investment for the Charitable Trust over the past year, when Larry Williams says the stock’s ready to run, my inclination is to bet with him, not against him, because his track record is just that good. I would change my mind only if I had an awful experience at a Costco. That’s never happened between my last three visits at three different stores around the country. Larry Williams says buy Costco.”

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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.

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