We recently published an article titled Jim Cramer Discussed These 8 Stocks Recently. In this article, we are going to take a look at where Costco Wholesale Corporation (NASDAQ:COST) stands against the other stocks Jim Cramer recently discussed.
Jim Cramer, host of Mad Money, provided important guidance to investors last Friday, emphasizing the difficult market conditions ahead. He highlighted the instability caused by President Trump’s unpredictable tariff policies. Cramer warned that this uncertainty could lead to further losses for investors. Looking ahead to the coming week, Cramer pointed out a significant event on Wednesday when the consumer price index (CPI) data will be released. He added:
“I’ll tell you this, If we get a soft CPI and a soft PPI on Thursday, the drumbeat of a rate cut will grow so loud, so loud, it might even overshadow the pained forecast for the White House. With cool inflation meetings, the Fed has no reason not to cut.”
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Cramer turned his attention to Friday when the Michigan consumer sentiment number will be reported, acknowledging that this indicator was not something he paid much attention to during President Biden’s administration.
“I didn’t focus on this number much at all under President Biden because Biden was very predictable so it was easy to make plans. Sure, Wall Street’s hated many of Biden’s policies, especially on interest, but he rarely took us by surprise. Trump surprises us every day.”
Cramer pointed out the importance of consumer sentiment, stating, “We’re a consumer-driven economy, people.” He explained that if optimism prevails, some stocks that might seem risky could actually be good buys.
On the other hand, if pessimism takes hold, many fund managers may sell off stocks tied to the economy, only to see those same stocks rebound once the selling pressure subsides. Cramer also highlighted an important point: while markets can absorb negativity, they cannot handle uncertainty.
“The bottom line: Look, it’s one of the toughest markets I’ve seen in years… So if you wanna buy a stock, make sure not to buy it all once. Buy slowly because the stock you purchase might be down five points by the time you get your report.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 7. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
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 Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 96
Cramer’s game plan included Costco Wholesale Corporation (NASDAQ:COST) and he said:
“One stock I am a buyer of though is Costco, which reported excellent numbers last night and still got obliterated. Wait until Tuesday and then buy some. All the sellers will probably be done. It’s a longstanding position for my Charitable Trust. I actually wanna buy more. I haven’t wanted to do that in a very long time… And by the way, it did not miss earnings. That’s just wrong. Those are people who don’t know how to read Costco’s report. I do.”
Costco Wholesale Corporation (NASDAQ:COST) operates a membership-driven warehouse model, offering a variety of branded and private-label products in bulk at reduced prices, appealing to customers looking for value on larger purchases. Earlier in February, Cramer remarked:
“I even see this with Costco and Walmart, the two best retailers in America. When Costco reports, people tend to be repelled by the quarter. It could lose a hundred points only to start the trek higher again as there was no reason to sell the stock in the first place.”
Overall COST ranks 7th on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of COST as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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 the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
