Costco Stock Could Nab A Fresh Round of 52-Week Highs

An unwinding of pessimism could further boost COST

Fernanda Horner

Digital Content Manager

Nov 7, 2023 at 2:28 PM

COST

Costco Wholesale Corporation (NASDAQ: COST) stock is up 0.6% at $573.15 at last check, and on track for a third-straight win. The equity also sports a 25.6% year-to-date lead, and staged a bounce off its 120-day moving average. With help from a historically bullish trendline now flashing, the security could soon conquer fresh 52-week highs.

COST 120 Day

Per Schaeffer's Quantitative Analyst Rocky White, Costco stock's Oct. 18, one-year high of $577.30 comes amid historically low implied volatility (IV). This has been a bullish combination in the past, with White's data pointing to no fewer seven other signals over the last five years when the equity 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 19%, which sits in the 17th percentile of its annual range. Shares were higher one month after 71% of these signals, averaging a 3.6% pop. From its current trading level, a move of similar magnitude would place COST at $593.78 -- its highest level since April 2022.

Options traders have been overwhelmingly bearish toward COST. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), META sports a 10-day put/call volume ratio or 1.23 that stands in the 97th percentile of readings from the past year.

Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.37 ranks in the 96th percentile of reading from the past 12 months. In other words, an unwinding of pessimism in the options pits could generate tailwinds for Costco stock moving forward.

Follow @Schaeffers

Are You Ready for AI's Potential Supercycle Phase?
Amazon's Jeff Bezos surprised investors when he revealed that one emerging technology is the key to Amazon's future success... This technology could be worth $80 trillion by 2030. Learn more and join Motley Fool's Stock Advisor for 50% off!

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.