CNBC’s Jim Cramer on Friday told investors it’s a good idea to buy Costco, whose earnings on Thursday beat Wall Street’s expectations but the stock still slipped in extended trading.
“So let it come in, but, as I tell investing club members, remember to buy some if you don’t own it already,” he said. “And if Costco keeps falling, just keep buying more, because there’s nothing else like this company — never will be.”
Cramer said he’s confident about the big-box retailer’s path to success and isn’t worried about its recent change in management. Costco has a new CEO in Ron Vachris and a new finance chief, Gary Millerchip. To Cramer, Vachris is a solid choice because he’s been at the company for 40 years — starting his career as a forklift driver and later working closely with Costco’s former CEO, Craig Jelinek. Cramer added that he thinks Millerchip, who previously served as the chief financial officer of Kroger, is a solid executive.
Costco also has an edge on competitors by managing to keep prices down, Cramer said. He praised the affordability of the company’s own brand, Kirkland.
“All in all, the Costco quarter was perfectly better than expected, and the only thing that was imperfect was the stock’s inevitable decline from its all-time high levels right before it reported,” he said. “That, of course, isn’t new either. This is what always happens with the stock of Costco.”
Costco didn’t immediately respond to a request for comment.
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Costco.
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