We recently published a list of 10 Jim Cramer Stocks to Watch Amid Trump Tariff Wars. In this article, we are going to take a look at where Costco Wholesale Corp (NASDAQ:COST) stands against other stocks that Jim Cramer discusses.
Jim Cramer in a latest program on CNBC talked about the latest signs of de-escalation in trade wars between the US and China and told investors that even bear market rallies could be a positive sign. Cramer, however, believes the US government has yet to give any clarity on its policies on China.
“There’s a great misunderstanding about how real recoveries get started. They always start as bear market rallies, for heaven’s sake. They’re rarely based on hard facts. When you get this kind of rally, it doesn’t happen because someone gave you the green light to start buying. You don’t get a statement from the president that the trade war is over and everything’s back to normal.”
In addition to positive reports on the US-China tariff front, Cramer also mentioned the latest reports on President Trump’s stance on Fed Chair Jerome Powell, saying that the possibility of Trump firing the central bank chief seems to be “off the table.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article, we picked 10 stocks Jim Cramer recently talked about during his latest programs on CNBC. With each stock, we have mentioned the number of hedge fund investors. 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).
A customer in a warehouse aisles, browsing the wide range of branded and private-label products.
Costco Wholesale Corp (NASDAQ:COST)
Number of Hedge Fund Investors: 75
Jim Cramer in a latest program on CNBC explained why Costco Wholesale Corp (NASDAQ:COST) will benefit from tariffs.
“Costco huge winner. Why? Because they have a club. The club status is to pass on anything. And then they still have the, and it’s still going to be cheaper. So we cannot lump all these together. We lump them initially. Costco is going to be down as much as Target, but then we have to come back and say maybe Target should stay down, but Costco should go up. So there’s like a secondary look at things.”
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 stocks that Jim Cramer discusses. While we acknowledge the potential of COST as an investment, 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
