Analyst's 5-Month Forecast Halts Jim Cramer's Costco Sale

Edgen Stock·Jan 08 2026, 20:12

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Key Takeaways

Influential market commentator Jim Cramer revealed his Charitable Trust partially sold its Costco holdings but halted a complete liquidation after a bullish analysis from technician Larry Williams. Williams's proprietary indicators suggest the retailer's stock is undervalued and poised for a significant move higher.

Partial Liquidation: Jim Cramer's Charitable Trust sold a portion of its Costco (COST) position but retained the rest, reversing a plan to exit the stock completely.
Bullish Technicals: Legendary technician Larry Williams presented an analysis showing Costco is undervalued and is experiencing professional accumulation, suggesting institutional buying.
5-Month Outlook: Williams's cycle forecast indicates the stock is a "coiled spring" and is expected to perform strongly over the next five months.

Technical Analysis Halts Cramer's Planned Costco Liquidation

On January 8, 2026, Jim Cramer disclosed that his Charitable Trust had trimmed its position in Costco Wholesale Corporation (NASDAQ: COST). He noted he was prepared to sell the entire holding due to the stock's recent underperformance. However, a timely intervention from technician and market historian Larry Williams convinced him to hold the remaining shares.

I was about to dump the whole rest of the position… when Larry Williams, the legendary technician and market historian, wrote me and said it was time to buy Costco.

— Jim Cramer

Cramer's decision to heed the advice underscores the weight Williams's analysis carries. Instead of exiting, the trust maintained its exposure, betting on a technical-driven rebound rather than reacting to the stock's recent price slide.

Williams's Model Forecasts 5-Month Climb from Undervalued Levels

Larry Williams's analysis, which Cramer shared, points to several bullish factors. A proprietary valuation gauge indicates that Costco stock is currently undervalued. Furthermore, a second proprietary measure tracking professional accumulation shows that institutions are actively buying the stock, a sign of smart-money confidence.

Combining these indicators, Williams's cycle forecast projects a strong upward trend for Costco over the near term. The analysis suggests the stock is a "coiled spring" and that the next five months "should be pretty darn good" for the company's shares. This outlook provides a clear, time-bound counter-narrative to the stock's recent poor performance, framing it as a buying opportunity before a potential rebound.