Macy’s (M)

If you’re looking for top stocks to buy right now to dominate your class Stock Market Game, Macy’s (M) could be a surprising pick that helps you rise to the top. While Macy’s stock has struggled over the past decade, a new CEO and a dirt-cheap stock price mean it could be the right moment for a big comeback. For high school students competing to win their stock market game, using a high-risk, high-reward strategy like momentum trading could be your secret weapon. This type of strategy is risky, but it’s ideal for short-term games. Keep in mind, it’s not a good choice for building long-term financial wealth.

Macy’s has faced serious competition from stores like T.J. Maxx and Nordstrom, losing about 75% of its value over the past 10 years. Ouch, right? However, under new leadership from Tony Spring, Macy’s is looking to turn things around. He’s already making moves that could lift the stock, and buying shares now—while they’re cheap—could put you in the perfect spot for a quick win. “When a stock like Macy’s is down but has solid fundamentals, it often rebounds fast,” says stock analyst Jordan Lewis. “For short-term traders looking to win a stock game, it’s a perfect candidate.”

In the Stock Market Game, you’re aiming for short-term wins, which is different from long-term investing. Short-term trading, like day trading or the momentum strategy, focuses on quick gains and fast moves in stock prices. Macy’s shares are currently trading at a massive discount—around 50% cheaper than similar companies like Nordstrom. If Macy’s starts to perform better, you could see the stock price surge, especially with Spring’s strategy of revitalizing stores and introducing new luxury products.

Momentum trading involves jumping on stocks that are on the move, whether they’re going up or down. Macy’s is down right now, but that’s why it could be a great play for your stock market game. “Macy’s stock is ridiculously cheap,” says financial expert Rachel Moore. “A small improvement in performance could cause the stock to bounce, and that’s exactly what momentum traders are looking for.”

But remember, high-risk strategies like this are designed for short-term success. They’re not how you build long-term wealth. For real-life investing, you’ll want to focus on diversification. Diversifying means spreading your investments across different stocks or assets to reduce risk. For example, an S&P 500 index fund is a great way to diversify because it gives you exposure to 500 different companies, lowering the chance that one stock’s drop will hurt you. In the long term, a diversified portfolio helps you save for big goals like college or retirement, while high-risk plays like momentum trading are better suited for games or short-term goals.

Back to Macy’s—why now? Tony Spring, the new CEO, has a strong understanding of what consumers want. He’s already helped Bloomingdale’s (owned by Macy’s) outperform by bringing in luxury brands like Saint Laurent and Balenciaga. Now, he’s planning to revamp Macy’s stores with better products and staffing, starting with the “First 50” stores. And the strategy is working: In those refreshed stores, sales jumped by 3.4%, while overall sales for the chain dropped. Macy’s plans to expand these changes to more stores, which could boost the stock price even further.

Even better, Macy’s stock is trading at just 5.75 times its expected future earnings, making it a bargain compared to its competitors. That’s a huge discount, and some analysts believe the company’s real estate alone is worth more than its current market value. If Macy’s stock falls even more, it could even attract interest from buyers looking to acquire the company. But whether that happens or not, Macy’s has the right leadership and strategy to bounce back.

If you want to win your class’s Stock Market Game, taking a high-risk, high-reward approach and betting on Macy’s turnaround could be a smart move. Just remember, this is a short-term strategy. For long-term success, focus on diversifying your investments, like with an S&P 500 index fund, which will help you build wealth steadily over time. But for now, Macy’s might just be the top stock you need to claim victory!