“Fundamental” analysis just put Costco stock (COST) at the top of its “IT” list. Better late than never? We beg to differ
On March 15, longtime Costco CFO Richard Galanti stepped down after 40 years at the helm of the retail giant. In one interview, Galanti dispensed advice for future job applicants at the company, which included:
“Get [to the interview] a half hour early.”
Galanti’s reasoning, as stated in Business Insider on March 11: “People and companies tend to reveal a lot about themselves when they don’t think anyone is watching.”
Elliott wave analysts live by this strategy; arriving early to a stock to inspect and explore its Elliott wave environment. We have time to ask are prices adhering to the rules and guidelines of the proposed pattern? What is the critical support or resistance level? What must prices do to confirm the wave count? — BEFORE the ship of opportunity has left harbor.
Take, for instance, Costco Wholesale’s stock (COST). On March 7, COST soared to record highs after a parabolic start to 2024. And Wall Street has caught the feelings. “Investors Love Costco Stock” writes Yahoo Finance, March 17. That same day, Motley Fool tossed a venerable competitor under the bus:
Best Stock to Buy Right Now: Walmart or Costco?
Despite the stock’s richer valuation, I favor Costco’s stock over Walmart’s shares. It continues to have growth opportunities.
But from an Elliott wave perspective, the time to catch feels for COST occurred much earlier. On November 3, our Trader’s Classroom arrived at the stock’s price chart and saw an undeniable opportunity: a bullish 1-2, 1-2 set-up making way for a third wave advance. From the November 3 Trader’s Classroom:
What does the wave count say? From that big low back in early 2022, the pattern is very bullish. We’re going to new highs.
What happened?
From there, COST took off running until smashing new record highs on March 7. On that day, our March 7 Trader’s Classroom showed this chart of the stock’s “amazing” advance and said:
“Here we have Costco. This thing has just gone ballistic, vertical so this count has worked out in spades. I try to pick stuff that’s going to move both to allow for potential opportunity for you and also to see waves in action. So we’re certainly seeing that now.”
As for when COST’s next opportunity will occur – the March 7 Trader’s Classroom explains what the best strategy is right now to both maximize reward and manage risk.
Trader’s Classroom subscribers can watch that video, and more, before dinner is on the table!
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