Jim Cramer Says These 10 Stocks Can Do Well Regardless of Who Wins

4. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 71

Cramer pointed out Costco Wholesale Corporation’s (NASDAQ:COST) business model and how it makes money.

“I like Costco… These retailers have done tremendous work pushing back against inflation by using their scale to push costs down then passing on the savings to you, the customer. Neither candidate can mess with that proposition… Costco’s got a business model where they make most of their money off the membership card. The model’s about getting as much volume as possible, not taking as much price as possible and that’s why everybody loves it. That and of course, the free samples… We love going down the aisles, just imagining how much more we’d have to pay at some other store…

All three of these retailers work. Even if President Trump installs high tariffs, none has any meaningful foreign exposure that can hurt them even as they all have overseas operations.”

Costco (NASDAQ:COST) operates membership-based warehouses, offering a wide range of branded and private-label products, as well as various services including gasoline, pharmacies, and online business delivery. Its membership model is a key component of its business, offering a consistent revenue stream that directly benefits the company’s profitability. This model has proven to be highly effective, with membership renewal rates consistently hovering around 90%.

The company’s success with this model is also evident in its continued expansion as it is one of the few large brick-and-mortar retailers still opening new stores. In fiscal 2024, which ended on September 1, the company opened 30 new warehouse locations, bringing the total number of warehouses to 890. Of these new openings, 23 were in the U.S., with the rest in international markets.

Additionally, Costco (NASDAQ:COST) management recently raised its membership fee, increasing the cost of a basic annual membership from $60 to $65. This fee adjustment comes as part of the company’s ongoing efforts to drive revenue and strengthen its business model.