Jim Cramer Gives Investors Two Stocks to Buy Now

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So after Eli Lilly,  (LLY) - Get Report what are my next favorites to buy in the portfolio? And I know [Action Alerts PLUS Senior Analyst Jeff Marks] and I was going over this. People always want to know which are the ones -- if they just join or they're looking at it -- which are the ones that I want them to buy right now? So let's go over that. My next two favorites are the retailers, Walmart  (WMT) - Get Report and Costco.  (COST) - Get Report

Now, the former is off its highs and has a fantastic brick-and-mortar e-commerce platform. Some people say it's slowing -- I'm not buying that -- as well as a new catalyst, which is the potential sale of some of its controlling position in Flipkart. That's the Indian Amazon.  (AMZN) - Get Report I think this stock, which is up 4 for this week. could go back to its highs, not unlike Home Depot  (HD) - Get Report and Lowe's,  (LOW) - Get Report and that would give it 14 points of upside. Do you know that Walmart's one of the worst stocks in the Dow this year? It’s off 3%, and that makes it relatively cheap.

Costco, on the other hand, isn't cheap. But if I can buy the stock of a retailer that just reported 17% comparable sales, and call it 11% backing out gasoline, well, I mean, this was the incredibly hard month for Costco, right? I mean, remember, the pandemic had begun. People going to Costco were stripping the shelves of things. So it was a really hard quarter, really hard month to compare and -- wow -- they blew it away. By the way, I think even they were surprised. I think they were shocked.

Oh, by the way, you know when will this pandemic be over? As I told [CNBC’s] David Faber this morning when they bring back those darn-free samples at Costco. I like both these stocks.

Let me just say that my friend Larry Williams, who told me last week on the “Off the Charts” segment of “Mad Money” that this would be a great chart, a great two trades, both Walmart and Costco, right into the next three days after Easter: I checked in with him today, for you, and he thinks that you can ring the register, but if you bought just for a trade. I have told him that we are investors in the stocks, but he's just saying anyone who bought it for a trade, you've had your catalyst, you had what you need.

I think that he's a technician, I’m a fundamentalist. The fact that Costco had 17% comps, the fact that Walmart's well off its highs and is doing very well, and it’s got that Flipkart: Those are buys. 

Walmart and Costco stocks are key holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer adds or removes stocks from his portfolio? Learn more now.

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