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by jonnyb on August 9th, 2006

jonnyb

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In stock market terms what does a stock being described as "Overweight" mean?

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Answers. 6 helpful answers below.

  • by CCCCCCCCCCA on January 19th, 2007

    CCCCCCCCCCA

    the stock is a better value relative to other stocks in the same sector

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  • by Joe-Speedy on August 9th, 2006

    Joe-Speedy

    The stock value is too high to sustain itself and will likely fall soon. consider the Tech stock bubble in the late 1990's. Tech stocks were overweight.

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  • by jammin78 on April 28th, 2008

    jammin78

    Overweight is a good thing. Analysts' terms can be confusing. Here's a great reference:

    http://www.investopedia.com/articles/01/013101.asp

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  • by kpowell9 on January 24th, 2008

    kpowell9

    Overweight is a positive term. It means that the analyst believes it will outperform the market. All of the comments on this thread, with the exception of CCCCCCCCCCCA's comment are incorrect. Do a simple google search. This does, however, prove how ridiculous that term is. Analysts shouldn't use it. Buy or outperform would be a better indicator of the meaning.

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  • by notquitered on April 28th, 2008

    notquitered

    Actually it is the opposite sorry. If a stock is deemed "overweight" the analyst is saying, in his opinion, the stock is a better value relative to other stocks he covers in the same sector.

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  • by timetogetserious on January 19th, 2007

    timetogetserious

    It means it is overpriced relative to other stocks in the same sector or other compariable stocks. The stock will generally have a high P/E ratio that is unsustainable.

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