Teva Surges on 41% Volume Spike as High-Volume Stock Strategy Posts 166% Return

On July 30, 2025, Teva Pharmaceutical Industries (TEVA) traded higher by 1.75%, with a trading volume of $0.42 billion, a 41.19% increase from the previous day’s volume. The stock’s performance was driven by updated financial guidance and strategic progress in its innovative portfolio.

Teva reported Q2 2025 revenues of $4.2 billion, with key innovative products like Austedo, Ajovy, and Uzedy driving a 26% year-over-year growth in local currency. The company raised its 2025 revenue outlook for these products, projecting $2 billion–$2.05 billion for Austedo, $630 million–$640 million for Ajovy, and $190 million–$200 million for Uzedy. This growth is attributed to strong U.S. market performance, promotional activities, and pipeline advancements, including the anticipated submission of an NDA for olanzapine LAI in Q4 2025.

Operating margin progress underpins Teva’s Pivot to Growth strategy, with the company on track to achieve a 30% operating profit margin by 2027. Cost-saving initiatives from transformation programs are expected to generate ~$140 million in annual savings in 2025, contributing to ~$700 million in total savings by 2027. Meanwhile, the generics segment showed stability, though revenue declines in the U.S. and International Markets segments were partially offset by biosimilar launches and optimized portfolio management.

Management emphasized the role of innovation in sustaining long-term growth, with CEO Richard Francis highlighting the company’s focus on expanding its biosimilars portfolio and advancing high-value pipeline assets. Teva also reaffirmed its 2025 revenue guidance of $16.8 billion–$17.2 billion and adjusted earnings per share of $2.50–$2.60, factoring in potential tariff impacts and ongoing operational efficiencies.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a 166.71% return from 2022 to the present, significantly outperforming the benchmark return of 29.18%. The strategy’s excess return of 137.53% and a CAGR of 31.89% highlight its effectiveness, with a Sharpe ratio of 1.14 and a maximum drawdown of 0.00% underscoring strong risk-adjusted performance.