Jim Cramer Says "Costco is the Best Buy in the Industry"

Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer shed light on. A caller asked if it is a good time to reduce their position, buy more, or hold, given that the stock reached an all-time high earlier this year and its recent decline under new leadership. In response, Cramer said:

“Okay, it’s funny, and people have to understand. I actually do not know the questions ahead of time, and I just literally talked to a caller, and I was saying that I think that Costco’s right. Now, when I say Costco’s right, it sells at 45 times earnings. It typically is not never cheap. I remember this from the old Berkshire days with the late Charlie Munger. Hey it, can you just start buying something? Because it seems that at 45 times earnings, I think you can start a position. We own a long-standing position for the Charitable Trust. I don’t like to violate my basis, but Costco is the best buy in the industry. I think it’s been hurt by a piece in a major magazine about how maybe the best times are over. I just don’t think that. So anyway, I agree, Costco’s good.”

Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouses that provide food and non-food merchandise. Additionally, the company offers services such as fuel stations, pharmacies, optical centers, and e-commerce operations.

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Disclosure: None. This article is originally published at Insider Monkey.