Overweight (stock market)

Within the stock market, the term overweight can be used in two different contexts.

  1. A rating of a stock by a financial analyst as having better value for money than other stocks. The other possible ratings are "underweight" and "equal weight", to indicate a particular stock's attractiveness.
  2. A judgement of an investment portfolio that it holds proportionately more than the benchmark weight of a certain asset (a share, bond, industry/sector, country, currency, or asset class, etc.).