by bobbi73 on September 28th, 2006

bobbi73

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What does underweight mean in stock terms?

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  • by Ruffy on February 10th, 2007

    Ruffy

    When you underweight a stock, it means that you are discounting its allocation in the portfolio b/c it's potential to reach a higher target price is not forseeable.


    If you overweight a stock, sector, industry, or country, it means you are increasing its allocation in the portfolio to achieve higher returns.

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  • by Persky Bunkermeister on September 29th, 2006

    Persky Bunkermeister

    Underweight is a type of sell recommendation that means that the stock is not expected to perform as well as other stocks within the same industry over the next year or two.

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