Jim Cramer Says "I Want You to Stay With Costco, I Still Like It"

Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer answered questions about. A caller inquired after Cramer’s current thoughts on the stock and if the stock valuation is too “rich” to get back into. He commented:

What a great question. Okay… my concern about Costco, which we’ve owned pretty much for as long as I have the Charitable Trust, you know my concern was that it was selling at 50 times earnings. The highest it ever really trades at is 47. The numbers are coming through, though, and that matters. We need to see the re-up rate. Right now, the re-up rate is not as strong as I’d like. The stock has bounced; that’s terrific, but a lot of that’s technical. I’m urging you to stay long Costco. It didn’t do well today because it was up very big last week, on people thinking that there would be a lot of pantry stocking. There was, and it was already discounted. I want you to stay with Costco. I still like it.

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

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