I keep reading that a stock has been changed from "underweight" to "overwieght" by some covering analyst...PLEASE clarify!!!! :) thank you!
2006-07-28 07:18:47 · 6 answers · asked by sosa__98 2 in Business & Finance ➔ Investing
Overweight
A recommendation for investors to increase their investment position in a particular security, sector, asset class, or market. Brokerage firms such as Lehman Brothers and JP Morgan use “Overweight” when Upgrading a stock. Antithesis of Underweight.
Underweight
A recommendation for investors to decrease their investment position in a particular security, sector, asset class, or market. Brokerage firms such as Morgan Stanley and JP Morgan use “Underweight” when downgrading a stock. Antithesis of Overweight.
Neutral
Neither of the two above
2006-07-28 07:25:04 · answer #1 · answered by Rjmail 5 · 1⤊ 0⤋
Basically that's the analysts opinion of whether you should own less of the stock, more of the stock or some mythical average amount. That's the analyst's opinion. There are many variations on the labels analysts use to tell you what they think you should do with your money. (i.e. overweight, underweight, outperform, underperform, buy, sell, etc...).
There's no clear correlation between analyst recommendations and future stock performance, however. If there were, anyone could easily leverage their position and make a killing. When it comes to money, people look at anything that could give an advantage...including analyst performance.
I wouldn't rely on analyst opinions to make your investment decisions. You're probably better off to go with a good no-load index fund or research your own stocks.
2006-07-28 07:31:38 · answer #2 · answered by Kurt 3 · 0⤊ 0⤋
These are stock analyst ratings - go to Yahoo finance and you can see these listed for almost all traded companies.
Upgrades & Downgrades History for AT&T listed below
go to yahoo finance for a better description of each.
UPGRADES & DOWNGRADES HISTORY
Date Research Firm Action From To
27-Jul-06 HSBC Securities Upgrade Neutral Overweight
26-Jul-06 Stifel Nicolaus Downgrade Hold Sell
26-Jul-06 Robert W. Baird Upgrade Neutral Outperform
18-Jul-06 Prudential Initiated Overweight
5-Jul-06 Banc of America Sec Upgrade Neutral Buy
1-Jun-06 CIBC Wrld Mkts Upgrade Sector Perform Sector Outperform
16-May-06 Matrix Research Upgrade Buy Strong Buy
5-May-06 Credit Suisse Initiated Outperform
8-Mar-06 Morgan Stanley Upgrade Equal-weight Overweight
6-Mar-06 Soleil Downgrade Buy Hold
21-Feb-06 HSBC Securities Downgrade Overweight Neutral
12-Jan-06 Prudential Upgrade Neutral Overweight
18-Nov-05 UBS Upgrade Neutral Buy
24-Oct-05 Prudential Upgrade Underweight Market Perform
21-Oct-05 Friedman Billings Upgrade Underperform Mkt Perform
19-Oct-05 Lehman Brothers Upgrade Equal-weight Overweight
21-Sep-05 Hilliard Lyons Upgrade Neutral Buy
15-Sep-05 Bear Sterns Upgrade Peer Perform Outperform
2006-07-28 07:31:56 · answer #3 · answered by jjttkbford 4 · 0⤊ 0⤋
keep in mind, these same brokers and analysts had Enron on a Buy, or overweight, right up to the day of the collapse, even while the stock price was tanking. They still recommended the stock when it was cut in half, and still when it was cut to a fourth of its recent value.
That is their job, to recommend stocks, but they don't have any better idea which way the price will go than you do. And think again if you want to say they are for the "long-haul."
2006-07-28 07:52:31 · answer #4 · answered by dredude52 6 · 0⤊ 0⤋
1
2017-03-01 02:12:22 · answer #5 · answered by ? 3 · 0⤊ 0⤋
Over rated or Under rated,Some stock should be worth more than they are and some are not worth that amount at all.You know whats Neutral
2006-07-28 07:25:03 · answer #6 · answered by Joe P 4 · 0⤊ 0⤋