Costco Wholesale Corporation (NASDAQ: COST) reported stellar monthly numbers on Thursday. The retail chain said its sales were up 16.9% on an annualised basis in the five weeks that concluded on the 4th of July. Adjusted for gasoline prices and foreign exchange, its comparable sales in the retail month of June jumped 14.1% from the same period last year.
Cramer’s comments on CNBC’s “Squawk on the Street”
Costco’s eCommerce comparable sales were also up 20.8% last month. Lauding its upbeat monthly figures on CNBC’s “Squawk on the Street”, Mad Money host Jim Cramer said:
“Target and Costco are the two retailers that have really distinguished themselves this period. If Costco continues its spell higher, what it says is that perhaps when earnings season begins, if you surprise, you will be rewarded with a higher price.”
Costco shares were more than 1% up on Friday morning. Its share price has jumped $100 since a year-to-date low of $312 in March. The $182 billion company has a price to earnings ratio of 38.77.
Target has climbed by 20% since upbeat Q1 results
Cramer’s other pick, Target Corp (NYSE: TGT), has climbed by 20% since it reported market-beating results for the first quarter in May. The $122.65 billion company with a price to earnings ratio of 20.24 has soared close to 250% since the start of the pandemic. Cramer further said during his discussion on CNBC:
“What we want to see is do stocks react to good news. Because when they have the worst week for the Nasdaq, along with a down week, what it says to me is be careful as there’s not been anything negative, and yet the stocks have come down.”
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