The term underperform refers to an analyst recommendation that a stock is expected to do slightly worse than the overall market return.

Underperform

Analysts regularly evaluate and project stock performance. Analysts may provide this service on behalf of a particular brokerage house, or for private clients, or even for public dissemination through reports and investment publications.

Analysts will evaluate the financial conditions of an underlying security and any competitive information available about the industry. Based on this analysis, a stock may be described along a range from the lowest rating , "strong sell," i.

Analysts generally use the term "underperform" to refer to a stock that is fundamentally stable, but expected to perform below the market or industry sector to which the stock belongs. Investors can gather valuable information from analysts ' recommendations about particular stocks. Not all analysts' recommendations are consistent or based on the same measures of a company's activities or expected performance.

Understanding and weighing varying recommendations is an important part of an investor's work. Our in-depth tools give millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions.

Each month, more than 1 million visitors in countries across the globe turn to InvestingAnswers. Financial Dictionary Calculators Articles.

How it works Example: Most Popular Calculators Amortization Schedule Calculator: What Is the Repayment Schedule for My Mortgage? Compound Annual Growth Rate CAGR Calculator. How Much Could I Save Up Over Time?

Underperforming financial definition of underperforming

Million Dollar Savings Calculator: How Long Do I Need to Save to Become a Millionaire? How Much Do I Need To Save to Become a Millionaire? CONTENT LIBRARY Financial Terms Calculators Education Investment Ideas Personal Finance About Us Advertise Contact Us. Terms of Use Privacy Policy Disclaimer.