Best Practices For Spotting a Winning Stock Within a Top Industry Group
Every investor dreams of finding that next big stock before it takes off. The good news is that there’s a proven system that helps take a lot of the guesswork out of it.
The system I’m talking about? None other than William O’Neil’s methodology, developed after years of studying the traits of history’s greatest stock market winners. His research spanned multiple market cycles, going back to the early 1900s, and uncovered patterns that repeat again and again before a stock makes its biggest move.
For over 15 years, I worked side by side with fund managers around the world, teaching them this approach. I even remember a meeting where Bill O’Neil himself joined us as we reviewed the holdings of a major mutual fund with its portfolio manager.
But let’s get back to the point. Today, I’d like to walk you through some of those key traits of winning stocks that have guided top professionals for decades.
Examining the charts, paired with earnings, often gives you a good starting point.
Let’s take a look at two big names in coffee – Dutch Bros (BROS) and Starbucks (SBUX) – to uncover which one is brewing up a better chance to outperform.
For decades, Starbucks has been the leader in coffee retail. But in 2025, a younger competitor, Dutch Bros, started to steal the spotlight. On the business side and on the stock charts, BROS is showing strength. SBUX, on the other hand, is stuck in a downward grind.
So far in 2025, BROS has delivered impressive growth. It posted year-over-year sales growth near 28-29%, same-store sales are on the rise, and Q2 earnings exceeded expectations. The company even raised its full-year outlook and set optimistic targets for 2025-26.
Meanwhile, SBUX has a different story. Revenue growth has slowed, same-store sales have slipped, and earnings momentum has stalled. Even though Starbucks is profitable, it's lacking in growth acceleration.
Take a look at the charts below, and you’ll see how they confirm the company’s growth backdrop. Starbucks is in a confirmed downtrend, while Dutch Bros is moving closer to new highs.
Daily Chart of Dutch Bros (BROS)
Daily Chart of Starbucks (SBUX)
Next month, I’m launching a 5-part course that reveals the essential traits of winning stocks, along with the chart signals that appear just before a big move. This is the same methodology I’ve successfully applied for years in my widely respected MEM Edge Report, and now I’m excited to bring it directly to you.
Use this link to be among the first to get the details and learn how to uncover stocks with the potential to dramatically outperform the market.
Warmly,
Mary Ellen McGonagle
MEM Investment Research
