---
title: "Jim Cramer Puts Costco Stock (COST) in the 'Penalty Box.' Here's Why"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/298059430.md"
description: "CNBC's Jim Cramer placed Costco (COST) stock in the 'penalty box' due to its high valuation of 41 times forward earnings and slowing membership growth, particularly among younger consumers. This marks a reversal from his previous praise. Cramer warned that declining sign-ups and renewals could pose long-term headwinds for the retailer."
datetime: "2026-09-04T15:59:52.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/298059430.md)
  - [en](https://longbridge.com/en/news/298059430.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/298059430.md)
generator: "portal-rs"
---

# Jim Cramer Puts Costco Stock (COST) in the 'Penalty Box.' Here's Why

CNBC host Jim Cramer said he is putting Costco's (COST) stock in the "penalty box" after the retailer reported its latest monthly sales figures. It's a big reversal for Cramer, who previously praised Costco as a best-in-class retailer. On his TV show "Mad Money," Cramer took issue with Costco's valuation, noting that the stock is trading at an expensive multiple of 41 times forward earnings. He also said that signs are emerging that Costco's membership growth is slowing.

Parsing Costco's latest numbers, Cramer said that younger consumers are not signing up for memberships at the warehouse club or renewing at the same rate as older members. He added that the slower membership signups and renewals could pose a long-term headwind for Costco and might be weighing on the company's stock. So far in 2026. COST shares have risen 7%, trailing the market.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**