Costco Wholesale Has Fallen More Than 10% From Its Peak Before. Here’s What History Says Happens Next.
When Costco Wholesale (NASDAQ: COST) stock falls 10% or more from its peak, like right now, history says it usually sets a new high within a year, though there are a couple of important (and recent) counterexamples to be aware of. The stock’s most recent record high was in May of this year, and a recovery is already in progress; at the lows, its drawdown was just a hair over 18%.
For shareholders like yours truly, these stretches of bumpiness are annoying, but they’re also great opportunities to buy more shares. Let’s take a look at how Costco tends to perform in the periods after these declines to see why that’s the case.
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