by 
jonnyb
ANSWERS: 6
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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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the stock is a better value relative to other stocks in the same sector
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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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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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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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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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