With the third-quarter earnings season underway, Jim Cramer look forward to an earnings report from discount retailer Costco Wholesale on Wednesday.
Costco is scheduled to deliver its results before the opening bell.
The Issaquah, Wash.-based company recently reported better-than-expected September sales at stores open at least a year, helped by higher gasoline prices and stronger dollar. Its same-store sales rose by 6 percent while some analysts expected an increase of 5.7 percent, including the impact of fuel prices, according to published reports.
“Those terrific September numbers … got me thinking that I am too negative about this stock,” the "Mad Money" host said. “But if there’s one point I must never stop driving home, it’s that owning expensive stocks is risky.”
In turn, Cramer recommended investors be cautious with Costco’s stock and consider taking profits.
—Reuters contributed to this report
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