Overweight is a financial term that has two different meanings depending on the context. In investment rating circles, “overweight” indicates that a particular stock is an attractive investment. Overweight stocks are expected to outperform their sector, industry or even the market as a whole. The other two rating terms analysts use are underweight and equal weight. If a stock is selling for $75, and the analyst thinks the stock is worth $110, then the analyst will say the stock is overweight. If she thinks the stock is worth only $35, she will rate it as underweight. If $75 is the right price, then it will be rated as equal weight. In portfolio management, “overweight” means that the fund or portfolio has too much of a particular type of investment. However, an overweight portfolio may, or may not, be a bad thing. It’s bad for an indexed fund to be overweight, because that means the fund’s security mix doesn’t match the index it is supposed to mirror. For non-indexed funds, overweight can be good if the fund manager is trying to capture gains relevant to the security that is overweight. For instance, if a fund’s typical portfolio mix is 10% high tech stocks, but the current mix is 25% high tech, it may mean the portfolio manager thinks she can make above average gains with high tech stocks and can thus increase the overall return for the fund.