Jim Cramer on Nvidia Plus Other Stocks

4. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 75

Cramer highlighted how Costco Wholesale Corporation (NASDAQ:COST) has maintained an impressive deal over the years, saying:

“… There’s a reason why Costco has tens of millions of members… We’re loyal to the cause of low prices and Costco has instilled that loyalty in a very visible way… They can offer great deals because they carry a smaller selection of products. Enormous bulk gives them a lot of leverage.”

Costco (NASDAQ:COST) is a well-established membership-based warehouse retailer that offers a wide array of products, both branded and private-label. The company is known for its bulk sales model, which provides shoppers with significant value. For the fourth quarter of fiscal 2024, it reported an impressive 90.5% global renewal rate for memberships. Paid memberships rose by 7.3% year-over-year, reaching a total of 76.2 million.

A notable shift in the membership demographic has occurred since the pandemic, with a growing number of younger members. Management highlighted that half of the new signups in fiscal 2024 were individuals under 40, which presents a promising long-term growth opportunity as this demographic continues to shop at Costco.

In the fourth quarter of fiscal 2024, Costco (NASDAQ:COST) saw an increase in shopping frequency, with traffic rising by 6.4% worldwide and 5.6% in the U.S. Management also highlighted that the company’s mobile app was downloaded 3.5 million times during the quarter, which pushed the total number of downloads to around 39 million.