Jim Cramer’s Thoughts On These 8 Stocks and the Packaged Goods Playbook

6. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 75

Cramer highlighted that Costco Wholesale Corporation’s (NASDAQ:COST) quality private-label products and low prices are contributing to its rise.

“If you’re in the consumer packaged goods business, you have a hard time raising prices because when it goes up too much, you’re gonna get bushwhacked by an Amazon or a Costco, both of which offer really terrific private label products that many shoppers know that are as good as the originals. We buy Costco Kirkland brand toilet paper… We know from the former Costco, CFO, Richard Galanti that if these companies charge too much, it’s easy to bring them down simply by creating a homegrown competition, the excellent Kirkland brand… And there’s a reason why Walmart and Costco keep hitting new highs. They put a ceiling on so many products, both by forcing the suppliers to keep prices down or by blitzing them with house brands that seem just as good at a lower price.”

Costco (NASDAQ:COST) operates a membership-only warehouse model, offering a variety of branded and private-label products in bulk at lower prices, appealing to customers looking for value on larger purchases.