Costco Wholesale Corporation (COST)'s Business Model Is Volume, Says Jim Cramer

We recently published a list of Jim Cramer Says Trump’s One Big, Beautiful Bill Is Pro Growth & Discusses These 12 Stocks. In this article, we are going to take a look at where Costco Wholesale Corporation (NASDAQ:COST) stands against other stocks that Jim Cramer discusses.

Costco Wholesale Corporation (NASDAQ:COST) is one of Cramer’s top retail stock picks. The CNBC TV host is enamored with the stock primarily due to the firm’s scale and its ability to lower prices. Cramer believes that Costco Wholesale Corporation (NASDAQ:COST)’s scale will enable it to dominate the retail market along with Walmart in case President Trump’s tariffs end up causing inflation. He believes that the firm also uses its scale to leverage lower consumer prices. Cramer’s previous remarks about Costco Wholesale Corporation (NASDAQ:COST) asserted that apart from the company, no other retailer could match or compete with Walmart on a price basis. Here are his latest thoughts:

“Costco’s very, I am friendly with Richard Galanti, the former CFO. And one of the things that Costco did was say, I don’t know do we really have to do this [get into eCommerce]? And, then they realized they had to do it. And once they went in, I mean they come out guns blazing. I mean they’re a little like Apple in that sense. Like we don’t necessarily have to be first but we’re gonna be the best. And Costco’s model is so perfect for this, they are gonna have, I think they’re gonna pass on what they can. But remember, their model is volume.”

In a recent Mad Money episode, Cramer commented:

“Next, on Thursday, after the close, we hear from the company that I think has the most consistent earnings and also the most persistent sell-off after we see the earnings, even when they’re good, and I’m talking about Costco. It’s unnerving to watch a fantastic quarter and still see a stock go down. And that’s just how it’s done with this one, even as we have a fairly good idea how the company’s doing, because you know what?

This company gives us monthly numbers. As we tell investing club members, don’t buy Costco ahead of the quarter. It’s going to go down. It’s like TJX. You’ll usually get a much better price if you just wait a couple of days.”

Overall, COST ranks 9th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of COST, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COST and that has 100x upside potential, check out our report about this cheapest AI stock.

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