Underperform

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Underperform

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

Underperform

A broker's or brokerage firm's rating of a security. Such a security is expected to do marginally worse than the market as a whole for the period of time it holds the "underperform" rating. Some firms call the rating "market underperform" "moderate sell" or "weak hold." Different firms have different rating systems, but "underperform" is usually one rating above "sell" and one rating below "market perform" or "neutral." For example, if the market is expected to rise slightly, but a certain company's fundamentals are thought to be slightly weaker than the rest of the market, a brokerage firm might change that company's rating from market perform to underperform.
References in periodicals archive ?
Boards sometimes defend their inaction on underperformers by pointing out that term or age limits will eventually take care of the problem.
The Fund will generally focus on investing in turnarounds, distressed situations, restructurings, carve-outs, underperformers or other complex investment situations in middle market companies generating $25 million to $500 million of revenue.
Still, Wewer kept his rating on the stock unchanged at "Sector Underperformer," since the retailer has "lost substantial market [share] over the past few years and a turnaround will be a multiyear process.
The board tossed out by an institutional owner, TIAA-CREF, which then ushered in its own new board to turn around this chronic underperformer and salvage the fund's investment.
However, following the club's humiliating 4-1 defeat to Manchester City, a game in which he was far from United's only underperformer, Valencia found himself dropped from the starting line-up for the following league game against West Brom.
However, Rajpal had been an underperformer," said a senior cabinet minister.
Since Matthew Barrett has been there,he's transformed the bank from an underperformer into one of the best in the world in terms of shareholder value.
NEW YORK-CIBC World Markets analyst Dan Wewer said in his research note last week that the recent sale of Sears' credit card business to Citigroup is goods news for consumer electronics retailer Circuit City, which he rates as a "Sector Underperformer.
federal law for the first time in the city, allowing him to take over a high school designated as an underperformer years.
It remains to be seen, however,if Goosen,a crowd favourite but perennial underperformer here,can be consistent enough to give a home town victory.
It remains to be seen, however, if Goosen, a crowd favourite but perennial underperformer here, can be consistent enough to give a hometown victory.