PepsiCo Falls 3.46% with $1.62B Volume (72nd Rank) as High-Volume Momentum Stocks Surge 166% vs. 29% Benchmark

PepsiCo (PEP) closed 3.46% lower on July 31, 2025, with a trading volume of $1.62 billion, ranking 72nd in market activity for the day. The decline occurred amid broader market volatility, though liquidity-driven momentum strategies have shown strong performance in recent years, as high-volume stocks often outperform benchmarks over short-term horizons.

Analysts noted that the stock’s performance aligns with broader trends where liquidity concentration plays a critical role in price movements. While no company-specific news directly influenced PEP’s decline, the broader market environment—favoring high-volume momentum trades—highlighted structural shifts in trading dynamics. Strategies capitalizing on liquidity surges in liquid assets have consistently generated excess returns, underscoring the importance of volume metrics in current market conditions.

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day delivered a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18% return. This excess return of 137.53% was driven by momentum in high-volume equities, such as VICI Properties and Eli Lilly. The approach’s success reflects the market’s reliance on liquidity concentration, though its effectiveness may evolve with changing structural dynamics.