Overweight

1. A situation where a portfolio holds an excess amount of a particular security when compared to the security's weight in the underlying benchmark portfolio. Actively managed portfolios will make a security overweight when doing so will allow the portfolio to achieve excess returns.

2. An analyst's opinion regarding the future performance of a security. Overweight will usually signify that the security is expected to outperform either its industry, sector or, even, the market altogether.

1. Securities will usually be overweight when a portfolio manager believes that the security will outperform other securities in the portfolio. An example of overweighting a security would be when a portfolio normally holds a security at a weight of 15%, and the security's weight is raised to 25% in an attempt to increase the returns of the portfolio.

2. An example of an analyst's rating of overweight would be: The stock's return is expected to be above the average return of the overall industry over the next eight to 12 months. Specific analyst definitions vary regarding the time frame used and the benchmark the security is compared against.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Overweight — O ver*weight , a. 1. Overweighing; excessive. [Obs.] Of no overweight worth. Fuller. [1913 Webster] 2. Having a weight in excess of what is normal, proper, or expected; as, the doctor recommends dieting to all his overweight patients; overweight… …   The Collaborative International Dictionary of English

  • Overweight — O ver*weight , n. 1. Weight over and above what is required by law or custom. [1913 Webster] 2. Superabundance of weight; preponderance. [1913 Webster] …   The Collaborative International Dictionary of English

  • overweight — index ponderous Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • overweight — (adj.) in excess of proper or ordinary weight, 1630s, from OVER (Cf. over) + WEIGHT (Cf. weight) (n.) …   Etymology dictionary

  • overweight — [adj] heavier than average ample, bulky, corpulent, fat, fleshy, gross, heavy, hefty, huge, massive, obese, outsize, overfed, overstuffed, plump, portly, pudgy, rotund, stout, upholstered*, weighty; concept 491 Ant. skinny, thin, underweight …   New thesaurus

  • overweight — ► ADJECTIVE ▪ above a normal, desirable, or permitted weight …   English terms dictionary

  • overweight — [ō′vər wāt΄; ] for adj., also, & for v., usually [, ō΄vər wāt′] n. more weight than is needed, desired, or allowed; extra or surplus weight adj. above the normal, desirable, or allowed weight vt. OVERWEIGH …   English World dictionary

  • Overweight — This article is about the medical term. For the stock market term, see overweight (stock market). Overweight Classification and external resources …   Wikipedia

  • overweight — Usually refers to recommendation that leads an investor to increase their investment in a particular security or asset class. The increase is usually with respect to a benchmark. Suppose that U.S. equities compose 40% of the benchmark portfolio.… …   Financial and business terms

  • Overweight — The term overweight is used in two different ways. In one sense it is a way of saying imprecisely that someone is heavy. The other sense of overweight is more precise and designates a state between normal weight and obesity. The National… …   Medical dictionary

  • overweight — o|ver|weight [ˌəuvəˈweıt US ˌouvər ] adj 1.) someone who is overweight is too heavy and fat →↑underweight 10 kilos/20 lbs etc overweight ▪ Sally was fifty pounds overweight. ▪ He is slightly overweight. see usage note ↑fat1 2.) something such as… …   Dictionary of contemporary English

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