Costco Wholesale Corporation (NASDAQ:COST) was among the stocks Jim Cramer discussed during Mad Money, as he highlighted a difficult backdrop for stocks. A caller asked what the ideal entry price for the stock would be as a long-term investment, considering current consumer financial challenges. Cramer replied:
Okay… I think that you buy some here, it’s at 47 times earnings, and then you hope it goes to 45. Now, I know people say, what do you mean, buy some and then hope it goes lower, but that’s how I work. I want value just like I want value at a store. And I think if you start Costco and you let it come in a little, well, that’s the way to play it. The worst that happens is it flies right out, 974 to 1025, and you have to kick it out. Let’s do it that way so that we don’t get caught up at one level because nobody’s that good.
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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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