Cramer says to buy Costco after the stock's post-earnings dip

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Cramer said he’s confident about the big box retailer’s success and pointed to new CEO Ron Vachris, and new CFO Gary Millerchip.

CNBC's Jim Cramer on Friday told investors it's a good idea to buy Costco even after shares fell after earnings.

"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.""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.

Cramer said he's confident about the big box retailer's success and isn't worried about its recent change in management. Costco has a new CEO in Ron Vachris, and a new CFO, 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.

Costco also has an edge because it's making an effort 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."Feeling out of the loop? We'll catch you up on the Chicago news you need to know.

 

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