What do stock analysts mean when they say...?

Question

Market perform or outperform, or stuff like that? Is there a place to go to find a listing of all of these and what they mean?

Answer 1

It's supposed to give you an idea of how well a stock will perform versus the market in general. Market perform means the stock is expected to perform as well (or as badly) as the broader market. Market outperform means the stock should outperform the broader market. These terms are used in both up and down markets. So in a down market, a market outperform stock should be down less than the market, although it could also be flat or up, its performance should be better than the market as a whole.

Answer 2

Please know that stock analysts are merely stating their opinions. When they say Market perform, they believe the stock will stay about with the general market. But when they say Outperform, they see the stock as doing better than most. When they say Underperform, they see the stock as not keeping up with the general market. Every brokerage company will list how they rate companies, so you can contact them directly for that list... some expect you to be a client, but some will share it with you if they think you'll join their client list. You can actually find some listings of what you're seeking right on Yahoo Finance.

Answer 3

Stock success is often graded relative to an index, such as the S&P 500. It means that they believe XYZ stock will do better than comparable stocks in its sector or type, if its "market outperform".

This also reflects the tendency for the entire market to move together. Stocks will wander up & down based on external factors of the company, such as the economy, war, price of oil, and other investment alternatives. Even if a company is performing well, its stock price can be dragged down if the whole market turns sour. So this also serves as a hedge for the analyst to say, "This company should do good, but if the whole market goes south, don't blame ME."

Answer 4

Market Perform = Hold, about the same as the market. Market Outperform = Buy, better than the average stock in the market. Market Underperform is probably pretty self explanatory at this point :)

Answer 5

I did see such a list, but i can't recall if it was on yahoo Finance or Morningstar. Every brokerage or analyst house has a different system. Some say Buy and hold, some say market outperform or perform. Roughly the same recommendations.

Answer 6

It means the stock is expected to do better then other stocks in the industry.

Answer 7

goto world stock market websites (NYSE, ASX etc)
they have helpful info explaining this stuff