Jim Cramer is Discussing These 10 Stocks Ahead of Q1 Earnings Season

2. Costco Wholesale Corp (NASDAQ:COST)

Number of Hedge Fund Investors: 75

A caller recently asked Jim Cramer about Costco Wholesale Corp (NASDAQ:COST). Here is what Cramer said:

“I care about profitability, I care about growth. Costco’s got them. Costco is a buy. Stock is way too low. I know people are thinking it’s rolling over, I think that’ll prove to be wrong. Buy some here, buy some next week.”

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.”