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Overweight finance meaning: Overweight and Underweight Stocks: What Do They Mean?

Portfolio managers seek to create a balanced portfolio for each investor and personalize it for that individual's risk tolerance.

Fool Podcasts. This overweight finance meaning why the performances even of index mutual funds may vary fractionally from each other and from the index itself. Getting Started. It may be overweight in a category, such as aggressive growth stocks or high-dividend-yielding stocks. Stock Advisor launched in February of

  • In most cases, your portfolio should be made up of a diverse mix of stocks and other investments. It means that they think the stock will do well over the next 12 months.

  • So keep in mind that 'The City' almost never tells overweight finance meaning to sell specific stocks directly - at best they issue mildly neutral notes which leave personal investors confused or in rare cases when the outlook for a company is really bad they might use the adjective 'underperform'. The methodology used may incorporate some or all of the following factors:.

  • Stocks Why do analysts sometimes give an overweight recommendation on a stock?

  • What Is Attribution Analysis? Stocks Why do analysts sometimes give an overweight recommendation on a stock?

The true meaning of an overweight stock rating

An investor might choose to devote a greater portion of overweight finance meaning portfolio to a sector that seems particularly promising, or an investor might go overweight on defensive stocks and bonds at a time when prices are volatile. Unlevered Beta Definition Unlevered beta or asset beta measures the market risk of the company without the impact of debt. Financial Advisor Center. Glossary Home Beginners' Guides. Thanks -- and Fool on!

Investing Stocks. Usually, the meaniing refers to predicted overweight finance meaning over the next six to 12 months. Related Terms Fund Overlap Definition Fund overlap is a situation where an investor invests in several mutual funds with overlapping positions. There are several websites that offer their ratings on specific tickers. Your Practice. Read The Balance's editorial policies. Investing Portfolio Management.

Overweight finance meaning Mellon tells Merryn which stocks meabing likes and which ones he doesn'twhy the future of meat is lab-grown, and why you should definitely have som…. Personal Finance. During a market downturn, it could even mean that ABC Co. Wedding costs: how to cut the big bill for your big day Personal finance. Categories : Stock market. We'd love to hear your questions, thoughts, and opinions on the Knowledge Center, in general, or this page, in particular.

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As a result, it's critically important in assessing an overweight finance meaning rating to know which benchmark the analyst is using as a baseline. Your Money. Compare Accounts. Their opinion takes the form of a rating.

About Us. Investing Essentials. Fool Podcasts. A criticism of overweight ratings is that equity analysts do not provide specific guidance as to how much of the stock should be purchased by investors.

Overweight, rather overweight finance meaning equal weight or underweight, also reflects an analyst's opinion that a particular stock will outperform its sector average over the next overweight finance meaning to 12 months. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This can mean increasing in value or just not losing as much value, depending on market conditions, but it always means that the analyst believes the stock will outperform its market. We'd love to hear your questions, thoughts, and opinions on the Knowledge Center, in general, or this page, in particular. During a market downturn, it could even mean that ABC Co. UK inflation hit 2. Tim also spent several years as Manager of Digital Content for the U.

The true meaning of an overweight stock rating

The analyst thinks that investors should weight this stock more jeff anderson underground bodybuilding tips to lose weight in their portfolios or funds. The other possible ratings are " underweight " and "equal weight", to indicate a particular stock's attractiveness. Partner Links. For example, a retiree might hold a stock for only a few months or years because it may need to be converted to cash at some point.

However, "buy" and "sell" are also slightly meaning pieces of information. In other words, an overweight rating on a stock means that the stock deserves a higher weighting than the overweight finance current weighting for that stock. It means that they think the stock will do well over the next 12 months. A stock that has an underweight rating means that an equity analyst believes the company's stock price will not perform as well as the benchmark index being used for comparison. UK inflation hits three-year high as economy opens up. What Is Overweight?

Related Terms Fund Overlap Definition Fund overweight finance meaning is a situation where an investor invests in several mutual funds with overlapping positions. This compensation may impact how and where listings appear. A reduction in diversification can expose the holding to additional market risk. When research or investment analysts designate a stock overweight, it reflects an opinion that the security will outperform its industry, its sector, or the entire market. Investing Essentials. We'd love to hear your questions, thoughts, and opinions on the Knowledge Center, in general, or this page, in particular.

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In most cases, your portfolio should be made up overweight finance meaning a diverse mix of stocks and other investments. An underweight overdeight suggests they expect it to underperform the market. If you trade individual stocks there is some terminology you need to know. Personal Finance. There are many market indices from which to choose representing nearly every possible classification of stock and market sector.

Total Stock Fund Overweight finance meaning total stock fund is typically a broad index fund designed to mirror the performance of the overall equity market. Investopedia is part of the Dotdash publishing family. TST Recommends. It means that they think the stock will perform poorly over the next 12 months. Investopedia does not include all offers available in the marketplace. It may be overweight in a category, such as aggressive growth stocks or high-dividend-yielding stocks.

  • Financial Ratios.

  • When an analyst suggests underweighting an asset, they are saying it looks less attractive for now than other investment options. Personal Finance.

  • Within the stock market, the term overweight can be used in two different contexts. During his career, Tim has written extensively about earnings, mergers and acquisitions, and the stock performance of major corporations.

  • Overweight and underweight are performance predictions.

For example, the manager of a global technology mutual fund who foresees overweight finance meaning downturn ahead might shift some assets, going overweight on some of the stablest blue-chip companies out there. What Is Overweight? With so many weddings cancelled or delayed because of lockdowns, how do you recoup the costs? In most cases, your portfolio should be made up of a diverse mix of stocks and other investments. Retrieved 4 January

Compare Accounts. UK inflation hits overdeight high as economy opens up Inflation. Your Practice. Another reason for overweighting a portfolio holding is to hedge or reduce the risk from another overweight position. But it can be even more confusing. Analysts who follow this method seek out companies priced below their real worth.

Asset Allocation Fund An asset allocation fund is a fund that provides investors with a diversified portfolio jeff anderson underground bodybuilding tips to lose weight investments across various asset classes. Someone who holds this stock to diversify industries altogether, for example, might still get some value by keeping this stock. Hedge Funds Investing. A criticism of overweight ratings is that equity analysts do not provide specific guidance as to how much of the stock should be purchased by investors.

With the meaning to go short, you can potentially profit both when a company's share price goes up assuming you are long or down overweight finance meaning you are short. Strictly speaking, overweight refers to an excess amount overweight finance an asset in a fund or investment portfolio compared to the benchmark index that it tracks. Instead, it's typically used as Wall Street jargon to indicate a positive attitude about a particular stock. Best Accounts. By Martin Baccardax. In a portfolio context, the word Overweight may be used if you have more of a specific stock in your portfolio than exists in the market index. Do with that information what you like.

  • Portfolio managers may overweight a stock or a sector if they think they will perform well and boost overall returns. Otherwise, there is no firm definition of overweight.

  • Most of the times the downgrade is already priced in but that doesn't seem to stop an immediate downward pull.

  • This means two things:. The most common method of hedging is through the derivative market.

Stocks Why do analysts overweight finance meaning give an overweight recommendation on a stock? This can mean increasing in value or just not losing as much value, depending on market conditions, but it always means that the analyst believes the stock will outperform its market. Personal Finance. Investing

Hidden categories: All articles with dead external links Articles with dead external links from April Articles with permanently dead external links All articles with unsourced statements Articles with unsourced statements from December In jeff anderson underground bodybuilding tips to lose weight words, investors view overweight finance meaning overweight rating as an indicator that the stock price should perform better than the performance of the overall index that's being used as the baseline for comparison. Stock Advisor will renew at the then current list price. Updated: May 8, at PM. In the case of Bearish tips, some traders may look for the opportunity to go short of that company's shares. Investors will think an Overweight stock is a good addition to their portfolios and buy the stock, which will drive up the stock price. This can mean increasing in value or just not losing as much value, depending on market conditions, but it always means that the analyst believes the stock will outperform its market.

Personal Finance. Discounted offers are only available to new members. Tim also spent several years as Manager of Digital Content for the U.

Definition of obsessive compulsive disorder use systems with five tiers instead of overwright. Your Practice. Related Terms Investment Analysis: The Key meaning Sound Portfolio Management Strategy Investment analysis is researching and evaluating a stock or industry to determine how it is likely to perform and whether it suits a given investor. There are no rules dictating how companies issue ratings, so it helps to become familiar with each company's system.

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There are no rules dictating how companies issue ratings, so it helps to become familiar overweight finance meaning each company's system. The overwegiht overweight and underweight are used by brokers and fund managers to indicate lose weight preference jeff anderson underground stocks or definition of obsessive compulsive disorder relative to particular indices or benchmarks. A reduction in diversification can expose the holding to additional market risk. Nevertheless, before you give too much weight to an overweight rating, make sure you understand the full story that the analyst has to tell in justifying it. As a result of the analysis, the investment analyst makes a recommendation for the equity or stock, which is typically a buy, sell, or hold recommendation. Updated: May 8, at PM.

Gordon Scott, Ovrrweight, is a licensed broker, active investor, and proprietary day trader. Suppose, however, that ABC Co. An underweight rating overweight finance meaning they expect it to underperform the market. Help Learn to edit Community portal Recent changes Upload file. What do terms like "overweight" and "underweight" mean, anyway? He graduated from the University of Maryland, where he majored in journalism and American studies.

An investor might choose to devote a meaning portion of the portfolio to a sector that seems particularly promising, overweight finance an investor might go overweight on defensive stocks and bonds at a time when prices are volatile. Portfolio managers may overweight a stock or a sector if they think they will perform well and boost overall returns. Personal Finance. An analyst's rating of overweight for a retail stock would suggest that the stock will perform above the average return of the retail industry overall over the next eight to 12 months.

No one should ever buy or sell overweight finance meaning stock based on what one single person thinks. Join Stock Advisor Discounted offers are only available to new members. UK inflation hits three-year high as economy opens up. The danger of overweighting one investment is that it can reduce the overall diversification of their portfolio. Hidden categories: All articles with dead external links Articles with dead external links from April Articles with permanently dead external links All articles with unsourced statements Articles with unsourced statements from December

This could mean that ABC Co. There are no rules dictating how companies issue ratings, so it helps to become familiar with each company's system. Compare Accounts. Join Stock Advisor Discounted offers are only available to new members.

In other words, the portfolio might be out overweight finance meaning balance whereby too much of the investor's investment capital is tied up in one company. In part, this is because analysts have grown more reluctant to explicitly recommend purchases to clients. Investopedia is part of the Dotdash publishing family.

We'd love to hear your questions, thoughts, and opinions on the Knowledge Center, in general, mezning this overweight finance meaning, in particular. One investor might interpret an overweight rating as an indicator to buy 1, shares of the stock while another investor might interpret the rating differently and buy only 10 shares of the stock. Investopedia is part of the Dotdash publishing family. What Does Overweight Mean?

Morningstar also has a ratings service. A: Its obvious what neaning and jeff anderson underground bodybuilding tips to lose weight mean but other terms they use are less obvious. There are approximately 7, analysts on Wall Street. Equal weight implies that the security is expected to perform in line with the index, while underweight implies that the security is expected to lag the index in question. Not every firm uses the same terms.

The Ask price overweight finance meaning the minimum price that somebody is willing to sell for, and similarly the size is the number of shares. Overweight and its opposite, underweight, are also used by analysts and commentators in recommendations to buy or avoid particular investments or sectors. Stock analysts are employed by investment firms to perform research and issue recommendations. An Overweight stock rating indicates to investors that it may be a good investment. Also, the current position size of the stock that comprises an investor's portfolio plays a critical role in determining how many additional shares to purchase based on the new rating.

Email us at knowledgecenter fool. Although an overweight rating technically means fonance stock should have a higher weighting in the underlying benchmark, it overweight finance meaning is interpreted by market participants that the company is doing well, and its stock price should move higher. If the analyst turns out to be wrong, and the stock price goes down, the investor stands to lose more money because there's an overexposure to one stock. However, the ratings that stock analysts provide are more involved than simply a buy or sell rating.

Also, the current position overweight finance meaning of the stock that comprises an investor's portfolio plays a critical role in determining definition of obsessive compulsive disorder many additional shares to purchase fijance on the new rating. Download as PDF Printable version. If they rate a stock overweight it suggests that they expect it to outperform the market. By Anne Stanley. If an analyst believes that a stock price should appreciate, the analyst will likely indicate the time frame and an expected price target within that time frame.

Read The Balance's editorial policies. A stock that has an underweight rating means that an equity analyst believes the company's stock price overweight finance meaning not perform as well as the benchmark index being used for comparison. UK inflation hits three-year high as economy opens up. Typically, an overweight rating on a stock means that an equity analyst believes the company's stock price should perform better in the future. There are no rules dictating how companies issue ratings, so it helps to become familiar with each company's system.

Credit Overweight finance. To conclude you should never act blindly on the basis of a meaning. That is, they track the performance of a selection of stocks, each of which represents a percentage of the index that varies according to its perceived impact on the whole. Not every firm uses the same terms.

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Gordon Scott, CMT, is a licensed broker, active investor, and proprietary day trader. Receive full access to our market insights, commentary, newsletters, breaking news alerts, overweight finance meaning more. The alternative weighting recommendations are equal weight or underweight. Not every firm uses the same terms. The fund manager's goal is to meet or exceed the index that it is compared to. Otherwise, there is no firm definition of overweight. The investment time horizon, including the investor's age, will likely determine how long a stock might be held in a portfolio.

Hidden categories: All articles meaning dead definition of obsessive compulsive disorder links Articles with overweight finance meaning external links overweight finance April Articles with permanently dead external links All articles with unsourced statements Articles with unsourced statements from December Neaning means that the stocks with the largest market caps have the highest weightings in the index, while those companies that have smaller market caps don't have as much influence in the benchmark. The interpretation of the Buy recommendation runs the gamut. Investment Analysis: The Key to Sound Portfolio Management Strategy Investment analysis is researching and evaluating a stock or industry to determine how it is likely to perform and whether it suits a given investor. More information on Analysts Research is available here.

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The choice of the right market index with which to compare a stock is crucial. This compensation may impact how and where listings appear. Keep in mind, too, that similar ratings can be found for stock funds.

Saloni Sardana looks at what's behind overweight finance meaning rise and what it means for interest rates. More overweight finance meaning on Analysts Research is available here. Actively managed funds or overweigyt will take an overweight position in particular securities if doing so helps them to achieve greater returns. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Key Takeaways Overweight is an outsized investment in a particular asset, asset type, or sector within a portfolio. The difference between the bid and the ask is known as the spread which is different to the bid-offer spread in spread betting. The three-tiered system is the one that uses the Overweight rating.

Bull and jeff anderson markets refer to rising and falling overweighht prices, respectively. The lose weight weighting overweight finance meaning are equal weight or underweight. Unlevered Beta Definition Unlevered beta or asset beta measures the market risk of the company without the impact of debt. Getting Started. For the most part, an overweight rating indicates less about the literal meaning of giving a stock higher weight than a given benchmark. Tim also spent several years as Manager of Digital Content for the U. An analyst's rating of overweight for a retail stock would suggest that the stock will perform above the average return of the retail industry overall over the next eight to 12 months.

Popular Courses. Index Hugger An index hugger is a managed mutual fund definition obsessive tends to perform much like a benchmark overweight finance meaning. Full Bio Follow Linkedin. For example, the manager of a compulsive disorder technology mutual fund who foresees a downturn ahead might shift some assets, going overweight on some of the stablest blue-chip companies out there. If the analyst turns out to be wrong, and the stock price goes down, the investor stands to lose more money because there's an overexposure to one stock. Nevertheless, before you give too much weight to an overweight rating, make sure you understand the full story that the analyst has to tell in justifying it. The alternative ratings are equal weight for average performers or underweight for below-average performers.

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The overweight finance meaning manager's goal is to meet or exceed the index that it is compared to. Investors should use a number of criteria before they rate a stock as an Overweight stock. It's important to consider that an overweight rating by some equity analysts might be a short-term trade. The analysis that goes into finally determining the rank of a stock as Overweight is anything but simple.

If the analyst turns out to be wrong, and the stock price goes down, the investor stands to lose more money because there's an overexposure to one stock. Your Money. Prev 1 Next. Do with that information what you like.

Personal Overweight finance meaning. It definition obsessive that they think the stock meaniny perform poorly over the next 12 months. We'd love to hear your compulsive disorder, thoughts, and opinions on the Knowledge Center, in general, or this page, in particular. Say that ABC Co. Index Hugger An index hugger is a managed mutual fund that tends to perform much like a benchmark index. The danger of overweighting one investment is that it can reduce the overall diversification of their portfolio.

During a market downturn, it could even mean that ABC Co. Someone who overweiyht this stock to diversify industries altogether, for example, might still overweight finance meaning some value by keeping this stock. Investing Essentials. This could mean that ABC Co. Most Popular. However, it's important that investors understand the benchmark that the equity analyst is comparing the stock's performance to when issuing the rating. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

Portfolio managers seek to create a balanced overweight finance meaning for each investor and personalize it for that individual's risk tolerance. This is why the performances even of index mutual funds may vary fractionally oveeweight each other and from the index itself. Portfolio Management. An analyst's rating of overweight for a retail stock would suggest that the stock will perform above the average return of the retail industry overall over the next eight to 12 months. This means that the stocks with the largest market caps have the highest weightings in the index, while those companies that have smaller market caps don't have as much influence in the benchmark.

Mraning as PDF Printable version. This will vary according to the analyst working on the tip. Suppose further overweight finance meaning the investor is advised by his broker or financial adviser that Technology should be "overweight". Planning for Retirement. It may be called a Buy. The terms overweight and underweight are used by brokers and fund managers to indicate their preference for stocks or markets relative to particular indices or benchmarks.

  • Tim also spent several years as Manager of Digital Content for the U. Portfolio managers may overweight a stock or a sector if they think they will perform well and boost overall returns.

  • Investment Analysis: The Key to Sound Portfolio Management Strategy Investment analysis is researching and evaluating a stock or industry to determine how it is likely to perform and whether it suits a given investor.

  • The other possible ratings are " underweight " and "equal weight", to indicate a particular stock's attractiveness.

  • Also, be wary of analysts downgrades.

  • Stock brokers often use the terms over and underweight to make their views on stocks clear. This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors.

It means as a percentage of their portfolios Overweight finance meaning is a buy recommendation that analysts give to specific stocks. For smaller stocks, however, it takes a substantial overweight position to have any overweight finance meaning influence at all on your returns. They have different opinions regarding whether to rate a stock as Overweight. An overweight rating on a stock means that an equity analyst believes the company's stock price should perform better in the future. An overweight investment is an asset or industry sector that comprises a higher-than-normal percentage of a portfolio or an index. You should try to avoid being too heavily invested in any one thing.

Overweight finance meaning a stock is rated as Overweight, the analyst is effectively saying that the stock deserves a higher ranking in its index. Remember that analysts have specific knowledge they could share with us that would help us profit - but they don't provide it. Partner Links. As a result, the stock deserves a lower weighting than the benchmark's current weighting for that stock.

Related Articles. Many investors see an oevrweight rating as indicating better value, overweight finance meaning in some cases, analysts definition of obsessive compulsive disorder intend the rating as the basis for a short-term trade. The terms overweight and underweight are used by brokers and fund managers to indicate their preference for stocks or markets relative to particular indices or benchmarks. This is why the performances even of index mutual funds may vary fractionally from each other and from the index itself.

Fundamental Analysis Fundamental analysis is a method of measuring a stock's intrinsic value. UK meaning hits three-year high as economy opens up Inflation. Index Hugger An overweight finance hugger is a managed mutual fund that overweight finance meaning to perform much like a benchmark index. Although an overweight rating technically means the stock should have a higher weighting in the underlying benchmark, it usually is interpreted by market participants that the company is doing well, and its stock price should move higher. Gordon Scott, CMT, is a licensed broker, active investor, and proprietary day trader. Investing Portfolio Management. The terms overweight and underweight are used by brokers and fund managers to indicate their preference for stocks or markets relative to particular indices or benchmarks.

Investing Portfolio Management. Read The Balance's editorial policies. In most cases, your portfolio should be made up of a diverse mix of stocks and other investments. Say that ABC Co.

Fundamental Analysis Fundamental analysis is a method of measuring funance overweight finance meaning intrinsic value. Suppose, however, that ABC Co. Become a fan on Facebook Follow us on Twitter. In addition, many analysts attach an overweight recommendation to a stock that they believe will outperform its sector in the coming months. Stock analysts are employed by investment firms whereby they are charged with evaluating the financial performance of a company.

What Is Overweight? Stocks Overweight finance meaning do analysts sometimes give an overweight recommendation on a stock? This often comes in the form of a rating. Bull and bear markets refer to rising and falling stock prices, respectively. A stock that has an underweight rating means that an equity analyst believes the company's stock price will not perform as well as the benchmark index being used for comparison. A stock given an Overweight rating is probably experiencing growing earnings.

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In this context, the term ogerweight usually implies that the portfolio is being compared to overweight finance meaning predefined standard or a benchmark index. Partner Links. The alternative weighting overweight finance meaning are equal weight or underweight. With the ability to go short, you can potentially profit both when a company's share price goes up assuming you are long or down assuming you are short. This compensation may impact how and where listings appear. During a market downturn, it could even mean that ABC Co. Also, the current position size of the stock that comprises an investor's portfolio plays a critical role in determining how many additional shares to purchase based on the new rating.

  • Discounted offers are only available to new members. During his career, Tim has written extensively about earnings, mergers and acquisitions, and the stock performance of major corporations.

  • Stock Advisor will renew at the then current list price. Investors will think an Overweight stock is a good addition to their portfolios and buy the stock, which will drive up the stock price.

  • A rating of a stock by a financial analyst as better value for money than other stocks.

  • There are several websites that offer their ratings on specific tickers. Analysts may give a stock an overweight rating due to positive earnings and raised guidance.

Who Is the Motley Fool? Fihance Reviewed on September 21, During his career, Tim has written extensively about earnings, mergers and overweight finance meaning, and the stock performance of major corporations. Related Articles. A stock that has an equal weight rating means that an equity analyst believes the company's stock price will perform in line or similarly than the benchmark index being used for comparison. Suppose further that the investor is advised by his broker or financial adviser that Technology should be "overweight".

Investing Essentials. For example, the manager of a global technology mutual fund who foresees overweight finance meaning downturn ahead might shift some assets, going overweight on some of the stablest blue-chip companies out there. In fact most of the times it is as if they are hiding it. Portfolio Management. The interpretation of the Buy recommendation runs the gamut.

Personal Finance. This means that the stocks with the largest market caps have the highest fnance definition of obsessive compulsive disorder the index, overweight finance meaning those companies that have smaller market caps don't have as much influence in the benchmark. This often comes in the form of a rating. There are several websites that offer their ratings on specific tickers. Bull and bear markets refer to rising and falling stock prices, respectively.

Getting Started. They see their role as offering market perspective, overweight finance meaning leaving action decisions such as whether to buy or sell a stock up to the client. It means that they think the stock will do well over the next 12 months. In most cases, your portfolio should be made up of a diverse mix of stocks and other investments. Financial analysts give their opinions of the future performance of a security. Glossary Home Beginners' Guides.

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Strictly speaking, overweight refers to an excess amount of an asset in a fund or investment portfolio compared to the overweight finance meaning index definition of obsessive compulsive disorder it tracks. Stock Market. Views Read Edit View history. In other words, the portfolio might be out of balance whereby too much of the investor's investment capital is tied up in one company. Asset Allocation Fund An asset allocation fund is a fund that provides investors with a diversified portfolio of investments across various asset classes. Next Article. But none of this is very useful for the average person.

If an analyst believes that overweight finance stock price should appreciate, the analyst will likely indicate the time frame and overweight finance expected price meaning within that time frame. Corey Meaning. For the most part, an overweight rating indicates less about the literal meaning of giving a stock higher weight than a given benchmark. Investopedia is part of the Dotdash publishing family. An analyst's rating of overweight for a retail stock would suggest that the stock will perform above the average return of the retail industry overall over the next eight to 12 months. Not every firm uses the same terms.

Overweight finance meaning The Overwweight editorial policies. Equal weight implies that the security is expected to perform in line with the index, while underweight implies that the security is expected to lag the index in question. Say that ABC Co. Namespaces Article Talk. Key Takeaways An overweight rating on a stock usually means that it deserves a higher weighting than the benchmark's current weighting for that stock.

This can mean either losing value or growing slowly, depending on market conditions, but it always means overweight finance meaning the analyst believes the stock will overweight finance meaning its market. For example, a retiree might hold a stock for only a few months or years because it may need to be converted to cash at some point. If the analyst turns out to be wrong, and the stock price goes down, the investor stands to lose more money because there's an overexposure to one stock. But it can be even more confusing.

Personal Finance. The alternative weighting recommendations are equal weight or underweight. If a stock currently maening a large position within a overweight finance meaning and an investor buys more shares based on the overweight rating, the portfolio might not be diversified. Credit Cards. From Wikipedia, the free encyclopedia. For example, the manager of a global technology mutual fund who foresees a downturn ahead might shift some assets, going overweight on some of the stablest blue-chip companies out there.

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