It’s not often that long-term value stocks turn into potential high-flyers.
Most value stocks, by definition, are “on sale”.
Of course, “on sale” usually means a stock has dropped quite a bit.
But value investors love Costco (COST) and many have held it for decades (like Charlie Munger did).
And now this value investor favorite is very close to a breakout.
Here’s the chart:
COST has been on a tear and should do well even if we fall into a recession.
And a break above $896.67 could lead to momentum stock-like explosion.
We’ll keep an eye on it.
Happy trading,
— Scott Welsh
