This Retail Stock Has Even More Room to Run

Costco Wholesale Corporation (NASDAQ: COST) stock is up 0.8% to trade $558.27 at last check, after earlier scoring an 11-month high. The security has relied on support from its 20-day moving average since May, and now sports a 22.6% year-to-date lead. Even better, it looks like shares are not done rallying quiet yet, as they are flashing a historically bullish signal. 

Per Schaeffer's Quantitative Analyst Rocky White, Costco stock's latest surge comes amid historically low implied volatility (IV), which has been a bullish combination in the past. White's data shows six other signals in the last five years when COST was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower.

This is currently the case with the stock's SVI of 16%, which sits at the low 10th percentile of its annual range. One month after these signals, the shares were higher 67% of the time to average a 4% pop. From its current perch, a move of comparable magnitude would put the security at a one-year peak of $580.60.