Outperform

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Outperform

In general, this means to do better than some particular benchmark. Mutual Fund XYZ is said to outperform the S&P500 if its return exceeds the S&P500 return. However, this language does not take risk into account. That is, one might have a higher return than the benchmark in a particular year because of higher risk exposure. Outperform is also a term used by analysts to describe the prospects of a particular company. Usually, this means that the company will do better than its industry average. Related: underperform.

Market Outperform

A broker's or brokerage firm's rating of a security. Such a security is expected to do marginally better than the market as a whole for the period of time it holds the "market outperform" rating. Some firms call the rating "accumulate," "moderate buy," or simply "outperform." Different firms have different rating systems, but "market outperform" is usually one rating above "market perform" or "neutral," and one rating below "buy." For example, if the market is expected to go down slightly, but a certain company's fundamentals are thought to be sound, a brokerage firm might change that company's rating from market perform to market outperform.
References in periodicals archive ?
Given WWSL's strong operational performance, it is relatively well placed to manage its totex and potentially generate additional income from outperformance of its ODIs.
It's an impressive outperformance versus the bailout programme target for the primary surplus," said Athens-based Eurobank's chief economist Platon Monokroussos.
Following the outperformance of small and midcap stocks, many of these stocks now command a premium valuation, compared to their larger peers," said Miller.
But outperformance, which varied across the 32 portfolio strategies, was never high, and Ferri pointed out that if an advisor correctly chose a winning active strategy, there was a high likelihood of giving back that alpha by realizing an even greater loss in an active category with large underperformance.
The top ranked brokerage firms (the top 4 bulge bracket and the top 5 mid-tier and boutiques) had an average annualised outperformance of 15.
1 per cent outperformance against its benchmark in the first quarter, to return 8.
This could stem from a number of reasons: perhaps the outperformance was more luck than skill in the first place; perhaps the market environment changed, turning a successful strategy into one unsuited to the market ecology; or perhaps managers just become less interested as they make more money.
Three of the four recessions between 1970 and 2002 coincided with the start or early stages of a small-cap outperformance cycle.
Our ultimate goal is long-term outperformance, and we believe focused execution of X5's multi-format strategy offers our shareholders the best opportunities for durable, profitable growth.
Some analysts said strong demand and capacity expansion initiatives will continue to fuel solid revenue growth in 2008, and controlled spending levels will help drive earnings outperformance.
While index levels are important, especially for those investors constrained by index trackers and benchmarks, active fund managers have had an opportunity to deliver outperformance.
Several years ago, noted professors of finance observed the outperformance of the stock market for January relative to the year as a whole.