Magnificent Seven stocks Nvidia (NVDA), Meta Platforms (META) and Alphabet (GOOGL) have secured their spots on IBD Leaderboard, while Tesla (TSLA) looks on longingly on the watchlist. But retail giant Costco Wholesale (COST) is already a full-fledged member on this list of top growth stocks. And Costco is in buy range while holding support above its 50-day moving average.
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Costco Stock Shops For — And Finds — Support
Following a Federal Reserve-induced sell-off on Dec. 18, the Nasdaq has managed to cling to support at its 21-day exponential moving average.
Costco also pulled back last week, coming off an all-time high. The retail behemoth also fell below its 21-day line but remains above its 50-day line. The retailer trades within its buy range from a 923.83 entry it initially cleared on Nov 8.
Costco stock is not alone in trying to navigate this uncertain market heading into the end of the year.
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Support And Resistance For Costco, Nvidia And More
As Costco remains in buy range from its buy point, Nvidia and Meta also flash signs of both support and resistance.
Meta trades above its 50-day line and is now trying to retake its 21-day benchmark. The Instagram and Facebook parent also stands 1% below the 602.95 buy point it first cleared earlier this month. It has not triggered any sell signals.
Nvidia has encountered increased volatility since June, when it began forming a late-stage base. The artificial intelligence giant cleared a 140.76 entry in October but has shown seesaw action since then. Up over 3% Monday, Nvidia stands on the verge of retaking its 50-day line. But note how the 21-day line has undercut the longer-term 50-day benchmark, an indication of technical weakness.
In other Mag 7 news, Tesla stock and Alphabet-owned Google trade above those key moving averages. With its relative strength line rising sharply in recent months, Tesla looks to shake off the Dec. 18 sell-off and recharge its run. The electric vehicle maker rose over 2% Monday.
Since breaking past its 182.4 entry in a third-stage cup with handle, Google has held tough. Up again Monday, the search, cloud and AI powerhouse has become slightly extended.
Costco And Its ‘Secret’ To Growth
While not a high-flying growth stock in the vein of Nvidia, Meta, Alphabet and others, Costco has proved to be a steady yet great winner in past bull markets. The stock’s tremendous run since the market bottom in 2009 provides all the evidence.
Recurring revenue from membership fees drives solid and steady growth for Costco. The company marks up prices at one rate across the board, while all of the company’s profits come from annual member fees, according to “The Physics of Brand.”
Costco’s earnings have more than tripled from $5.33 a share in fiscal 2016 (ended in August) to $16.11 in fiscal 2024.
IBD Stock Checkup shows six quarter of rising fund ownership for Costco.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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