Royal Philips (PHG)

Looking to crush your class stock market game and take the top spot? Let’s talk about a stock that could be your secret weapon: Royal Philips. Yeah, Philips isn’t just about light bulbs anymore. This Dutch company has transformed into a serious player in the medical devices game, competing with giants like GE Healthcare and Siemens. Right now, Philips is trading about 60% below its peak, making it a super cheap stock with huge potential for a bounce back. If you’re searching for top stocks to buy now and win your stock market competition, Philips could be the high-risk, high-reward play you need.

Here’s the deal. Philips got hit hard over the past couple of years because of a massive recall involving their sleep apnea machines. Imagine having to recall over 5 million devices because some sound-dampening foam in them could pose health risks. That’s a serious problem, but it also means the stock tanked—now, it’s ready for a comeback. “Philips is in recovery mode, and for short-term traders, that means potential gains if you time it right,” says stock analyst Jenna Thompson. For anyone gunning to win a stock market game, this is the type of momentum play that could bring quick returns.

Now, to win your stock market game, you’ll need to take some calculated risks. A high-risk, high-reward strategy like this is great for short-term trading, especially in a competition setting where you need to make fast moves to outperform your classmates. But remember, this isn’t how you want to invest in the real world long-term. Real wealth-building involves diversification—spreading your investments across different stocks or sectors to minimize risk. Think of an S&P 500 index fund, which tracks 500 companies, as a safer bet for long-term financial goals.

But back to winning your game. Philips has already replaced 99% of the faulty devices and repair kits, so they’re turning things around. Sure, they’re still waiting on a consent decree from the U.S. Justice Department, which will determine their future in the U.S. sleep and respiratory-care market. But here’s the opportunity: “Once the legal dust settles, we could see Philips bounce back in a big way,” says stock analyst Mike Harris. The stock already jumped 5% when Italy’s Agnelli family—think of them like Europe’s version of Warren Buffet—bought a 15% stake in the company.

Philips is trading super cheap compared to its competitors. Their earnings are expected to be 37% lower this year than in 2020, but that’s because of the recall crisis. When that clears up, investors could be looking at some serious gains. For your stock market game, this is a golden opportunity to buy low and potentially sell high once the stock bounces back. It’s exactly the kind of momentum trade that could help you pull ahead and win.

There are risks, of course. If legal issues drag on, Philips could stay stuck in limbo longer than expected. They’ve already set aside €575 million (about $629 million) to cover lawsuits, and there could be more on the horizon. But the market loves clarity, and once there’s a resolution, Philips could be rewarded. Their second-quarter sales already grew by 9%, and they’ve moved from cash outflows to inflows, which is a good sign for a company with €8.2 billion in debt.

So why Philips? They’re no longer a messy conglomerate—now they’re laser-focused on the medical devices industry, which has long-term growth potential. Plus, their new CEO, Roy Jakobs, is making big moves, cutting jobs to streamline the company without the need for massive restructuring like GE had to do. For anyone trying to win their stock market game, this kind of focus and recovery potential is exactly what you’re looking for in a short-term trade.

Bottom line: Philips is a high-risk, high-reward stock that’s perfectly positioned for a rebound. If you’re serious about winning your class stock market game, this is one of those top stocks you might want to take a closer look at. Just don’t forget—once the game is over, smart investing is all about diversification and long-term strategy. For now, though, it’s all about that win, and Philips could be your ticket to victory.