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.

BREAKING DOWN 'Underperform'

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

  1. Downgrade

    A negative change in the rating of a security. This situation ...
  2. Hold

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

    The process of liquidating an asset in exchange for cash. The ...
  4. Mean Reversion

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

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

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