Top 500 High-Volume Stock Strategy Surpasses Benchmark by 137.53% Since 2022

On July 29, 2025, United Parcel Service (UPS) reported Q2 earnings with consolidated revenues of $21.2 billion, reflecting a 2.7% year-over-year decline. The stock fell 10.57% amid mixed results, driven by weak performance in U.S. Domestic and Supply Chain Solutions segments. Domestic package revenue dropped 0.8%, offset by higher air cargo and per-piece pricing, while international revenue rose 2.6% due to increased volume. Supply Chain Solutions revenue fell 18.3% due to the Coyote divestiture. Operating margins narrowed across all segments, with non-GAAP adjusted diluted EPS at $1.55, down from $1.79 in 2024. CEO Carol Tomé highlighted progress in strategic initiatives, including $3.5 billion in annual cost savings from network reconfiguration and efficiency programs.

Uncertainty around U.S.-China trade policies, including de minimis tariffs on low-value imports, weighed on investor sentiment. Analysts noted reduced demand for cross-border e-commerce shipments, impacting profitability. UPS reaffirmed 2025 guidance for capital expenditures ($3.5 billion), dividends ($5.5 billion), and tax rates (23.5%), but did not update revenue forecasts. The stock’s sharp decline followed a 235.56% surge in trading volume to $2.41 billion, reflecting heightened volatility. Strategic restructuring efforts, including facility closures and workforce reductions, remain central to long-term growth, though near-term challenges persist in navigating macroeconomic headwinds.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day resulted in a 166.71% return from 2022 to the present, significantly outperforming the benchmark return of 29.18%. The strategy's excess return was 137.53%, with a CAGR of 31.89%. It achieved a maximum drawdown of 0.00% and a Sharpe ratio of 1.14, demonstrating strong risk-adjusted performance and capital appreciation.