What does ‘Underperform’ mean
Underperform is an analyst recommendation when a stock is expected to do slightly worse than the market return.
Also known as market underperform, moderate sell, or weak hold.
Explaining ‘Underperform’
Exact definitions vary between brokerages, but in general this rating is worse than neutral but better than sell or strong sell.
Further Reading
- Why mutual funds “underperform” – www.sciencedirect.com [PDF]
- Do takeover targets underperform? Evidence from operating and stock returns – www.jstor.org [PDF]
- Do government-linked companies underperform? – www.sciencedirect.com [PDF]
- Index funds should be expected to underperform the index – www.tandfonline.com [PDF]
- Innovative female-led startups. Do women in business underperform? – www.mdpi.com [PDF]
- Why new issues and high-accrual firms underperform: The role of analysts' credulity – academic.oup.com [PDF]
- Does coordinated institutional investor activism reverse the fortunes of underperforming firms? – www.jstor.org [PDF]
- Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms – www.jstor.org [PDF]
- Do IPOs really underperform in the long-run? New evidence from the Canadian market – jpe.pm-research.com [PDF]
- The new stock that did not underperform – www.tandfonline.com [PDF]
