NEW YORK ( TheStreet) -- Jim Cramer was in a retail mood, speaking with TheStreet's Debra Borchardt about Costco ( COST) after its recent quarterly earnings report. Investors were slightly surprised when Costco, a holding of Cramer's Action Alerts PLUS, delivered such strong numbers this morning, especially after the heavy weakness seen in Target ( TGT) and Wal-Mart ( WMT) after their quarterly reports. According to Cramer, the most surprising thing was Costco subscriptions actually increased after the company recently raised membership fees. Most people would expect some sort of drop because of the price hike. Investors and analysts have started to think Costco is getting overvalued, especially compared to its peers. Cramer doesn't think so -- he thinks they're comparing Costco to the wrong types of companies. Costco, he said, "should trade at a massive premium to these other guys because it's a classic growth stock with a revenue stream that can be modeled." While there is clearly a shortage of Costco stores nationwide, it's because management is very picky about location and does not want to cannibalize its current stores. Cramer concluded Costco is "more like a Starbucks ( SBUX) than it is like a Wal-Mart." -- Written by Bret Kenwell in Petoskey, Mich.