ANSWERS: 2
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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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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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