Cramer's Morning Take: Nike & Costco 10/15/25

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Jim Cramer (0:47)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

SPEAKER_4 (0:54)

Why don't we get into some analyst calls? BTIG, they initiated a bunch of retail names. Nike, they love it. That's their top pick for 2026 $100 price target. So big believers in the turnaround here under CEO Elliot Hill.

Jim Cramer (1:09)

I thought that was amazing, and really the salient call today. Now, people look at the price earnings multiple have to realize it is, it's inflated because the earnings have been depressed. The only area that I think is going to be hard to turn around is China. But Elliot Hill has mentioned that I'm a real believer in Elliot Hill and what he's doing. In the same way that I'm a real believer in Brian Nick on what he's doing at Starbucks. I'm gonna be interviewing him in a few minutes for tonight's show. Look, we want to bank on smart executives who are doing very difficult turnarounds over multiple years. And I think Nike is maybe the cheapest stock in the portfolio right now. Hey, by the way, in terms of cheap stocks, we don't know you what Capital One is gonna report. But when I look at the credit losses of Bank of America and how low they are, we may be into a real gem when Capital One reports. So there's a belief that I'm looking for stocks to sell 12 times earnings. That's Capital One. That's the lowest in the banking group. And I think that Nike is gonna end up having a very low PE once Elliott does the job. And I know he's gonna do the job because he is an athlete and they were run by a technician and he can turn this around. I like their call by BTIJ.

SPEAKER_4 (2:21)

Yeah, when I think about the reward of a multi-year turnaround, my mind immediately goes to Charlie Sharpe as well. And we saw that yesterday with Wells' earnings report. And it took us three quarters.

Jim Cramer (2:31)

We had to go for three quarters. And we were able to do it because Charlie Sharpe, whom I actually is a friend of mine, I admit, Charlie Sharpe made me a believer. And I'm not going to back away from things where there could be a turn because Wells Fargo is one of the greatest calls we've ever had for the club.

SPEAKER_4 (2:49)

Yeah, I think Sharpe definitely deserves his flowers. All right, Costco, they have a buy BTIJ $1,115 price target, a strong loyalty to continue to drive strong sales, traffic growth, market share gains.

Jim Cramer (3:04)

Anything on Costco? Yes, absolutely. Costco was at 52 to 53 times earnings. That historically has been too high. It's now at 47 times earnings. That is the sweet spot of where you can buy the stock. Those who are not invested in it should recognize that Costco is about to embark on still one more major move. Time to buy Costco now that it's multiple so low. Join the CNBC Investing Club with Jim Cramer to catch my member exclusive warning minis every day at 10 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

Julia Boorstin (3:42)

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