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. Weak Sister

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

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

    An analyst's recommendation to neither buy nor sell a security. ...
  4. Outperform

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

    A theory suggesting that prices and returns eventually move back ...
  6. Buy

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