Underperform

AAA

DEFINITION of 'Underperform'

An analyst recommendation that means a stock is expected to do slightly worse than the market return.

Also known as market underperform, moderate sell, or weak hold.

INVESTOPEDIA EXPLAINS 'Underperform'

Exact definitions vary between brokerages, but in general this rating is worse than neutral but better than sell or strong sell.

RELATED TERMS
  1. Weak Sister

    An element that undermines the entire system. Weak sister can ...
  2. Hold

    An analyst's recommendation to neither buy nor sell a security. ...
  3. Mean Reversion

    A theory suggesting that prices and returns eventually move back ...
  4. Outperform

    An analyst recommendation meaning a stock is expected to do slightly ...
  5. Buy

    1. A recommendation to purchase a specific security. A buy rating ...
  6. Downgrade

    A negative change in the rating of a security. This situation ...
Related Articles
  1. Investing Basics

    Analyst Recommendations: Do Sell Ratings ...

  2. Bonds & Fixed Income

    Is Your Portfolio Beating Its Benchmark?

  3. Investing Basics

    Why There Are Few Sell Ratings On Wall ...

  4. Retirement

    7 Common Investor Mistakes

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center