What is an Overweight Stock

I felt like I made a mistake buying VISA a few minutes ago. 😒

The price went down.

Then Moomoo published a list of upgraded stocks.


VISA went from Neutral to Overweight.

What is an overweight stock?

Within the stock market, the term overweight can be used in two different contexts. 1. A rating of stock by a financial analyst as better value for money than other stocks. The other possible ratings are "underweight" and "equal weight", to indicate a particular stock's attractiveness. 

https://en.m.wikipedia.org/wiki/Overweight_(stock_market)

Is an overweight stock good?

Financial analysts give their opinions of the future performance of a security. They can give performance ratings of underweight, overweight, or market performance to a Security. If analysts give a stock an overweight rating, they expect the stock to outperform its industry in the market.

https://www.investopedia.com/ask/answers/050115/why-do-analysts-sometimes-give-overweight-recommendation-stock.asp

Is overweight buy or sell?

Overweight can also refer—in a looser sense—to an analyst's opinion that a stock will outperform others in its sector or the market. In this sense, it is a buy recommendation. When an analyst suggests underweighting an asset, they are saying it looks less attractive for now than other investment options.

https://www.investopedia.com/terms/o/overweight.asp

Let's just hope the price of Visa stock will rise when this news spreads. 🤑

~ rookie trader











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