Squawk on the Street
Cramer's Morning Take: Costco 9/20/24
Sep 20, 2024
Jeff Marks, a member of the CNBC Investing Club, joins Jim Cramer to discuss compelling market insights. They delve into Costco's impressive market performance and its high valuation as it nears its earnings report. The conversation also highlights Apple's stock dynamics, emphasizing growth driven by service revenue and new products, despite facing valuation criticisms. Cramer's steadfast support for Costco shines through, showcasing it as a 'well-run' retailer.
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Quick takeaways
- Costco demonstrates resilience in retail investing, as its strong monthly sales and quality fundamentals outweigh concerns over high price-to-earnings ratios.
- Apple's transformation towards service revenue and innovative marketing strategies underscore its sustained demand, despite analyst skepticism regarding sales orders.
Deep dives
Understanding Market Dynamics Through Costco and Apple
Costco's stock performance is highlighted as an interesting case in retail investing, demonstrating resilience and strength in its market positioning. Despite concerns about its high price-to-earnings ratio, the company's consistent strong monthly sales indicate a growing market share, particularly against competitors. Analysts anticipate upcoming earnings reports, but previous successes, such as a recent special cash dividend and membership fee increase, suggest strong fundamentals. This reflects a broader theme in investing: recognizing quality assets even when their multiples appear high.
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