Jim Cramer on Costco: "It's Been One of the Greatest Performers of All Time"

Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer recently shed light on. During the episode, a caller asked the reason behind the stock’s “lackluster” performance despite the fact that the company seems to be executing well. In response, Cramer said:

“Okay, well, first of all, let’s remember, long term, it’s been one of the greatest performers of all time. Second, what happens is, at 44 times earnings, the rest of the market sells at a much cheaper price. Periodically, it has these fits, but Walmart’s now at 40. I think that what you want to do is buy some here as we’ve been telling people for the, I’ve gotta tell you, I’ve been saying it for the club that under this price, jeez, it’s just, I know it’s never cheap, but you know what? It is cheaper. I say Costco under 900 is a [buy, buy, buy].”

Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and provides groceries, fresh food, household goods, electronics, and more. In addition, the company provides services like pharmacies, gas stations, optical centers, and e-commerce options.

While we acknowledge the potential of COST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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