Jim Cramer expressed strong confidence in Costco Wholesale (COST), stating the company’s fundamentals are too strong to justify selling, even amid broader market volatility. His remarks highlight enduring investor faith in the retailer’s operational excellence and consumer loyalty.
- Costco reported 12.3% YoY revenue growth in Q3 2025
- Active membership reached 137 million, up 15.7% YoY
- Operating margin of 14.2% exceeds retail sector average of 9.8%
- 23-year streak of annual dividend increases, latest hike at 6.1%
- Employee retention rate at 92%, far above 68% industry average
- COST shares rose 2.4% post-commentary; three firms upgraded price targets to $650
Jim Cramer, prominent financial commentator, reiterated his support for Costco Wholesale (COST) during a recent market analysis, emphasizing that despite short-term pressures, the company’s performance and strategic positioning make it too valuable to divest. Cramer noted that while some portfolio adjustments might be warranted in volatile environments, Costco’s consistent execution has made it a rare exception. He highlighted the retailer’s 12.3% year-over-year revenue growth in Q3 2025, driven by strong membership retention and robust e-commerce expansion. The company reported a 15.7% increase in active membership, reaching 137 million globally, and maintained a 14.2% operating margin—well above the 9.8% average in the broader retail sector. Cramer pointed to Costco’s disciplined cost management and low employee turnover as key differentiators, with a 12-month employee retention rate of 92%, significantly higher than the 68% industry average. These metrics underscore the company’s ability to maintain high service standards while controlling expenses. Furthermore, the company’s dividend growth remains one of the most consistent among S&P 500 consumer staples, with a 23-year streak of annual increases, including a 6.1% hike in December 2025. Market impact has been immediate, with COST shares rising 2.4% in early trading following the commentary. Analysts across major firms have since upgraded their ratings, with three firms lifting their price targets to $650 per share, reflecting a 12% upside potential. Institutional investors have also shown increased activity, with net buying observed in the past five trading sessions. The sentiment is particularly strong among dividend growth and quality-focused funds, which are now increasing exposure to Costco amid broader sector rotation.