CNBC's Jim Cramer pushed back against Wall Street's concerns about Costco, saying investors should buy the stock after its post-earnings decline.
The stock fell 1.27% during Friday's session to close at $342.58 per share, even after Costco one day earlier beat Wall Street expectations on the top and bottom lines. Sales of $53.38 billion eclipsed analyst forecasts of $52.08 billion, while per-share earnings of $3.04 was 20 cents better than estimates.
Cramer also said he was not really worried about customer retention being an issue for Costco. For starters, he said, shoppers have to have a membership, "so the customer base is as sticky as it gets." Costco's stock is up 15% so far in 2020 and 18% in the past 12 months. It notched an all-time high of $363.67 on Sept. 3. As of Friday's close, it sits almost 6% below that peak.
For example, he pointed to an outdoor heater that sells for $399 at Costco while it is listed for $599 on. "You heard me right, they're undercutting Amazon by 200 bucks. Once the pandemic subsides, are you really gonna go back to Amazon, or any other retailer, when you can get stuff for so much less from Costco?" he said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jim Cramer says Nvidia is a buy here, cites 'unstoppable' potential of Arm acquisition'Look, the stock was at $486 before the Arm news, and it's only at $494 now. I like that risk-reward,' CNBC's Jim Cramer said.
Read more »
Jim Cramer recommends buying Big Tech, dividend stocks into further weaknessCNBC's Jim Cramer said he expects there to be more volatility for the market ahead, but advised investors to consider stocks like Apple and PepsiCo when they reach appropriate prices.
Read more »
Cramer sees 'huge positives' on Tesla's Battery Day, tells investors to be patient on stock'If there hadn't been all of this hype about a million-mile battery, those would have been huge positives, and they were for me,' said CNBC's Jim Cramer.
Read more »
Jeff Daniels Wants Jim Carrey to 'Go Easy' on Joe Biden on 'SNL''The Comey Rule' star also shared how he thought Carrey might approach playing the Democratic presidential nominee in the episodes leading up to the 2020 presidential election while appearing on 'The Late Show With Stephen Colbert' Wednesday night.
Read more »
Meet Downton Abbey star Jim Carter's family – from co-star wife to childrenThe actor has been married to fellow Downton star and actress Imelda Staunton for many years – see their family here…
Read more »
Jim Carter reveals huge Downton Abbey sequel news – watch here!The actor revealed exclusively on This Morning some VERY exciting news about a new Downton Abbey film…
Read more »