Etsy (ETSY)

Who would’ve guessed that one of the biggest winners of the pandemic wouldn’t be streaming or fitness gear, but crafting? Yep, you heard that right—crafting. And the company at the heart of this unexpected success? Etsy. If you’re competing in your high school stock market game and wondering “how do I win my class stock market game?” or searching for “top stocks,” Etsy might be the unexpected secret weapon you need to edge out the competition.

Etsy is far from your typical “cool” tech stock. Its quirky, creative marketplace doesn’t have the same sleek vibe as something like Amazon, and its recommendation algorithms aren’t perfect. But that “wonderfully weird” identity has kept Etsy thriving in a crowded e-commerce world. Even as e-commerce platforms face a tough year, Etsy has held its ground. In fact, while most tech stocks took a nosedive, Etsy’s shares have climbed nearly 40% over the last three months, outperforming even the king of e-commerce, Amazon. Sure, Etsy’s stock is down 45% this year, but compared to Shopify, which lost around 70%, Etsy’s resilience is hard to ignore.

So, how can this help you win your stock market game? Etsy has proven it can stick around when others falter. The company pulled off a solid second quarter that matched Wall Street expectations, and its profit margins actually surprised analysts. Etsy even raised its seller fees in April—upping transaction fees from 5% to 6.5%—and guess what? Sellers didn’t flee. That shows just how valuable Etsy’s platform is. As AB Bernstein analyst Nikhil Devnani says, “Etsy continues to prove, one quarter at a time, that it has real staying power.” Translation: this stock is not just some pandemic fluke, it’s the real deal.

In 2020, Etsy exploded, with gross merchandise sales more than doubling. And in 2021, those sales grew by another 31%. People flocked to Etsy for custom face masks, and while the mask trend has faded, many of those shoppers are still sticking around. Etsy’s active buyers have doubled since 2019, and newer buyers are spending more than they did back in the pre-pandemic days. The best part? Nearly half of Etsy’s total gross merchandise sales come from what the company calls “habitual buyers”—people who’ve spent $200 or more and made purchases on six or more days in the last year. That’s a serious indicator of Etsy’s staying power.

Momentum trading, which focuses on stocks with short-term upward trends, can be a killer strategy to win your stock market game. And right now, Etsy is riding that momentum wave. Stocks like Etsy, which have taken a hit but are showing signs of recovery, can give you the high-risk, high-reward edge you need in a short-term competition. But remember, this kind of strategy is all about timing. If you’re playing the stock market game, you’re not looking to hold onto Etsy forever—just long enough to ride the wave to the top of your class leaderboard.

But let’s get real for a second: this kind of momentum trading is not what you’d want to rely on for building wealth in the long run. For that, you’d need to diversify. Imagine putting all your money into one stock and it tanks—there goes your entire portfolio. A diversified portfolio, with a mix of stocks from different industries, is your safety net. If you want to grow your wealth long-term, consider investing in something like an S&P 500 index fund. It spreads your risk across 500 companies, giving you a much safer and more stable investment over time.

But back to the competition. Etsy has some risks, sure. E-commerce companies like Etsy are exposed to broader economic challenges. There’s been a slight drop in gross merchandise sales per active buyer recently. That’s worth keeping an eye on, but it hasn’t derailed Etsy yet.

Even with those risks, Etsy’s stock is still trading at around 23 times forward enterprise value to earnings before interest, taxes, depreciation, and amortization (EBITDA). That’s below its five-year average of 30 times, meaning Etsy could still have plenty of room to grow.

So, if you’re serious about winning your stock market game and you’re willing to take a little risk, Etsy might just be the stock that gives you the edge you need. It’s crafty, quirky, and has proven it can hold its own when other companies are struggling. But just remember—while the high-risk, high-reward strategy can pay off in the short term, it’s not the way to build long-term wealth. Diversify your investments, and always think ahead to the bigger financial picture.

That said, if you’re looking to score big in your class stock market game, it might just pay to get a little crafty with your stock picks—and Etsy could be the key.