Jim Cramer: Costco has room to run despite a rich valuation and shares nearing all-time highs

CNBC's Jim Cramer likes Costco stock despite its high valuation and suggests it has more room to run. "I feel very comfortable" about Costco, Cramer said Thursday on " Squawk on the Street ," after the wholesale retailer reported a solid April sales report. "I know the multiple is very high, but they offer such a bargain." Costco trades at a forward price-to-earnings multiple of 44.8 — above its five-year average of 35.9x and the industry, according to FactSet.

mountain COST stock 1-year performance. Costco shares rose nearly 1.5% after Wednesday evening's monthly sales report showed core comparable sales, which exclude gas and foreign exchange fluctuations, gained 5.5% last month. While below Street estimates of 6.2%, core comps were still pretty strong considering the negative impact of a tough monthly comparison from this year's Easter calendar shift. The stock has been on a comeback lately after a post-earnings swoon of more than 7.

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