Costco Wholesale Corporation safe stock for beginners

What happened: Jim Cramer, a prominent investor, recently praised Costco Wholesale Corporation (NASDAQ:COST), stating it's "never ever cheap, and it is always terrific." Two separate articles ranked Costco among the top 15 safe stocks for beginner investors, with Oracle Corporation (NYSE:ORCL) also featured in one of the lists. Elite investors are positioning themselves in Costco ahead of a fee hike in September 2024.

Market impact: This narrative highlights the appeal of defensive stocks, particularly Costco and Oracle, to investors seeking stability. Costco's strong brand, loyal customer base, and robust cash flow make it an attractive choice. Oracle's dominant position in database software and ERP systems ensures steady revenue, even in economic downturns.

What to watch next: Costco's next earnings report on May 25, 2023, will provide insights into its growth prospects and the impact of inflation on its business. Additionally, investors should monitor Oracle's Q4 2023 earnings, expected on June 15, 2023, for updates on its cloud services and license growth.