What does "overweight" and "underweight" mean when referring to share prices?
2007-03-13 03:38:41 · 5 answers · asked by jonathan_onetwo 2 in Business & Finance ➔ Investing
Overweight (O or Over)
The stock's total return is expected to exceed the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months.
Equal-weight (E or Equal)
The stock's total return is expected to be in line with the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months.
Underweight (U or Under)
The stock's total return is expected to be below the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months.
2007-03-13 03:44:27 · answer #1 · answered by Faye H 6 · 1⤊ 0⤋
Overweight implies more of or too much of a particular stock (example ibm, cisco) or stock sector (computers,gas,. pharmaceuticals, etc.).. Underweight implies too little of a stock or stock sector.
Example:Your portfolio is overweight in the gas sector.
Meaning: "your portfolio has (relatively) too many gas company stocks .
Example: I recommend underweighing in the ethanol stocks sector.
Meaning: ...." I recommend owning few stocks in the ethanol sector--. relative to other sectors"
Example: I recommend overweighing in IBM
MEaning: euphemism for " BUYING IBM".
Example I recommend underweighing in IBM.
Meaning: "Selling or owning less IBM .
Example: I recommend underweight in the gas sector
Meaning: limiting or reducing relative ownership of gas sector stocks compared to other sectors. .
2007-03-13 04:14:29 · answer #2 · answered by njlanwnsandhomes 1 · 0⤊ 0⤋
you do no longer choose all the noise. you artwork out whether a proportion (a employer) is low-fee/costly or honest fee. you artwork out whther this is markets/industry proportion is starting to be or shrinking. whether that's rewarding with good money circulate. good administration. variety. etc. after which you choose 2 bits of terminology: purchase or sell. that's it!
2016-11-25 00:25:21 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I expect you are looking at Brokers future earnings and price estimates ?
Usually over / under means their 'recommendation' ... 'over' means they recommend buying more, 'under' means buy less.
2007-03-13 03:45:21 · answer #4 · answered by Steve B 7 · 0⤊ 0⤋
the answer is above is absolutely correct
2007-03-14 04:49:51 · answer #5 · answered by gaya.0001 2 · 0⤊ 0⤋