What does overweight stock mean?

[charlie]

Hey everyone
I keep seeing analysts rate certain stocks as “Overweight.” I’m confused — does this mean the stock is risky, overvalued, or that investors should buy more of it How does “overweight” compare to ratings like hold, neutral, or underweight?

 

[smith]

An analyst rating for an overweight stock indicates that it is anticipated to outperform the market as a whole or the industry average. It implies that because analysts think that stock has better growth potential or is undervalued, investors should think about including more of it in their portfolio than other stocks.

 

[Jessica]

An overweight stock is one that an investor or financial expert thinks will outperform others in its market or industry. It may receive a higher percentage from portfolio managers than its benchmark weight. It signals confidence in growth, potential returns, or market outperformance compared to peers.

 

[tonylopez]

The term Overweight is used as a rating of an analyst, which implies that the stock will perform better than the market. It is speculative that the investors can think of investing more in that stock.