U.S. Silica Holdings (SLCA)

Looking to crush your high school stock market game? You’re going to need a high-risk, high-reward strategy if you want to top the leaderboard. One stock that could be your secret weapon? U.S. Silica Holdings. This 120-year-old company might sound like it’s stuck in the past, but it’s making a serious comeback—just in time for you to snag some wins in your class competition.

U.S. Silica was almost out of the game back in 2020. Its market value dropped by 98%, leaving it looking like a lost cause. But just like the phoenix, it’s rising from the ashes—and now, it’s a top stock to consider if you’re aiming for short-term gains. Why? Because this company provides sand to the oil and gas industry, which is experiencing what CEO Bryan Shinn calls “sandemonium.” That’s right, sand. It’s a key ingredient in fracking, the process that helps unlock oil and gas from rock formations deep underground. Right now, the demand for this sand is booming, and prices are sky-high.

In your stock market game, taking risks is how you win, and momentum trading is one strategy to consider. Momentum trading is all about finding a stock that’s climbing, hopping on for the ride, and selling before it peaks. And U.S. Silica is riding that wave with record-high free cash flow expected this year, along with predictions of doubling profits by 2023. While it hasn’t been profitable since 2017, it’s starting to spew cash again—making it a prime candidate for a short-term win. As one analyst put it, “U.S. Silica’s rebound is no fluke. The company is perfectly positioned in today’s energy market, and savvy investors are taking notice.”

But remember: high-risk, high-reward plays like this aren’t for the faint of heart. In a volatile industry like oil and gas, what goes up often comes crashing down. This is where the strategy differs from long-term investing. While short-term traders can make quick profits by riding the momentum, long-term investors would prefer to spread out their risk with a diversified portfolio. For example, putting your money into an S&P 500 index fund, which invests in 500 of the largest U.S. companies, is a way to avoid the rollercoaster ride of betting everything on one stock like U.S. Silica. Diversification helps you build wealth steadily over time and reach big financial goals, like saving for college or your first car.

U.S. Silica, though, is about much more than just sand. Back in 2018, the company made a bold move to diversify, purchasing a business that mines specialty industrial materials used in products like pesticides and roofing. It seemed like bad timing when the fracking industry tanked, but now that diversification is starting to pay off. The company’s industrial division is finally making moves, giving U.S. Silica another revenue stream and making its future look more stable.

Here’s where things get interesting for your stock market game. While other stocks in the oil and gas sector might ride the boom-bust cycle, U.S. Silica has diversified its portfolio, giving it a little more security. That means it could continue to thrive even if the energy market takes a dip. Plus, the company is reducing its debt, which could lead to long-term stability. Shinn says the company’s contracts are “essentially sold out” for the next quarter, locking in future profits at attractive prices.

Sure, at just 9.7 times next year’s projected earnings, it’s easy to think U.S. Silica might crash again, but this is where its industrial diversification comes in. When oil prices drop, U.S. Silica’s other materials could keep it afloat, providing a more balanced financial future.

If you’re serious about winning your stock market game, you have to be willing to take some risks, and U.S. Silica could be that ticket. But don’t confuse short-term momentum trading with building a long-term investment strategy. While a high-risk stock like U.S. Silica can bring in quick gains, long-term success requires a more measured approach with diversified investments.

Ready to go all-in and win your class stock market game? U.S. Silica might just be the high-risk, high-reward play you need to dominate.