CNBC’s Jim Cramer on Friday recommended that investors seek refuge in Costco shares as September lives up to its reputation as a rough month. “There are some ports in this storm and one of them is Costco,” Cramer said on ” Squawk on the Street, ” calling the retailer a stock to own, especially in the recent market drop. In midday Friday trading, the S & P 500 was falling more than 1.5% in what’s shaping up to be the index’s worst week in a year. The Nasdaq on Friday was dropping 2.5%. “Buy some Costco if you don’t own any,” Cramer added during Friday’s Morning Meeting — exclusively for members of the CNBC Investing Club . Cramer’s confidence in Costco was bolstered by the retailer’s strong monthly sales report, which was released after Thursday’s closing bell. In the four weeks ended Sept. 1, net sales rose 7.1% to $19.83 billion year over year. That’s more than the expected 6.7% increase. Performance was solid across staples and discretionary categories. Food and sundries increased mid-single digits, fresh foods increased high-single digits, and non-foods increased low-double digits. Costco “rolls back prices endlessly,” Cramer highlighted, saying that’s the reason the stock is a holding in his Charitable Trust, the portfolio used by the Club. “Costco’s prices are so unbeatable,” he added, saying the value the wholesale retailer offers is resonating with its members even after the company’s recent membership fee hike. Costco can offer some of the most competitive prices in retail since its strong buying power allows it to negotiate favorable pricing with suppliers. The strong monthly sales print led to a series of price target increases from Wall Street. Evercore ISI went to $925 per share from $915. Loop Capital went to $975 from $970. Investors will get the bigger picture on Costco when it reports fiscal 2024 fourth-quarter earnings on Sept. 26.
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