Costco Wholesale Corporation (COST): Jim Cramer Discovers – “Now I Know Why Costco’s Strong”

Insider Monkey
05-02

We recently published Jim Cramer’s Surprised About US Travel As He Discusses These 18 Stocks. In this article, we are going to take a look at where Costco Wholesale Corporation (NASDAQ:COST) stands against other stocks that Jim Cramer discussed.

In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on the growing amount of stock buybacks and how the buybacks during April-May were the third best historically of the year. “Well, I’ll tell ya, the banks are the ones that are going to do it. They’re gonna start it and the banks have an appetite for their stock that is crazy,” he said.

Cramer also commented on President Trump’s senior counselor for trade and manufacturing, Peter Navarro. Navarro is an ardent believer in the trade imbalance that the US faces abroad and Cramer agrees with the assessment. “Well, Peter’s got, strong views. Peter’s a person with strong views,” according to Cramer.

Despite the fact that markets were roiled in April due to the President’s tariff announcements, when his co-host remarked that Navarro might not have the President’s ear, Cramer replied: “Well if that’s the case, death by China is winning right now. And death by China is Navarro.”

Another news bite that was brought up on the show was the decline in foreign arrivals in the US and the President saying the decline in foreign arrivals wasn’t a big deal. Cramer agrees with Trump as he said:

“So far, not. I think that the dollar being cheap for the first time in our lifetime is gonna make people. . .but when you listen to Proctor, you’re very conscious of the fact that the dollar’s weak and IBM and I think that people in the end, they’ll be excited. Excited to come to a place where the dollar’s finally not crushing them. And that does matter.”

However, he added:

“Well look, it’s not, obviously I think that there’s issues involving our country and how people view us and, look, you don’t need me to tell which way the wind blows. But I would have thought there would have been more weakness in travel. I’m just surprised that it’s just not bad.”

Our Methodology

To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on April 24th.

For these stocks, we also 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).

Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders In Q4 2024: 96

Costco Wholesale Corporation (NASDAQ:COST) has been one of Cramer’s top retail stocks throughout this year. Some of the reasons he likes the firm include its scale which Cramer believes can help it navigate through tariff-induced inflation and its efforts to reduce prices amidst the current inflationary environment. This time around, Cramer commented that Costco Wholesale Corporation (NASDAQ:COST) might also be benefiting from inflation forcing consumers to eat at home:

“When I listened to that I said okay. . .Now I know why Costco’s strong. There, Scott Boatwright had a very, this was the Chipotle call, it was a very straightforward call basically just saying, they didn’t mention the actual price of different things, but people would rather just have a couple of meals at home. Where it’s just cheaper.”

Overall, COST ranks 4th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of COST as an investment, our conviction lies in the belief that some 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.

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