Stock analysts recommendations say outperform, underperform, overweight, underweight...What do these mean?

Answer 1

From http://www.mysharetrading.com/broker-and-analyst-recommendation-primer.html

Overweightand Underweight are general terms used in describing an investment position. Being Overweight on an equity means that your position on the equity is stronger/larger than the generally accepted benchmark. Being Underweight means the opposite - which means your position on the equity is lower than the accepted benchmark. For example, if your equity portfolio normally holds 50 percent stocks and 50 percent cash and you liquidate some of your stock holdings to cash then you are Overweight cash and Underweight stocks.

Macquarie gives three types of recommendations: Outperform, Neutral and Underperform. An Outperform stock recommendation implies a projected rate of return of greater than 5 percent in excess of benchmark return (or greater than 2.5 percent in excess for listed property trusts). A Neutral recommendation implies a return within 5 percent of benchmark return (or within 2.5 percent for listed property trusts). An Underperform rating implies a return of less than 5 percent below benchmark return (or less than 2.5 percent below for listed property trusts).

Answer 2

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/fb19f

Answer 3

1

Answer 4

This question was answered at Stockpickr.com:

http://stockpickr.com/view/answers/4668/

Former Hedge Fund Manager Jim Cramer answers that question too:
-----------------------------------------------
These are all just varients of buy/hold/sell. Market
weight refers to how much of the S&P is made up of the
sector. Let's say oil is ten percent of the S&P. Then
if you own 15% oils in your portfolio you are
OVERweighted in oil....

Answered by Jim Cramer - Bookmark this User

Answer 5

Buttcovering.