Underperform

(redirected from underperformed)
Also found in: Dictionary, Thesaurus.

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 ?
Over a one-year rolling period, acquirers have underperformed overall by an average of 2.7 percentage points.
Eighty-one percent of small-cap mutual funds and institutional accounts underperformed the S&P SmallCap 600 benchmark before fees.
In the last month K Laser underperformed the Taiwan market by 19.5% and in the year has lost 41.8% of its value against its market's loss of 25.8%, underperforming by 16%.
The Carhart mutual fund study found that the average actively managed fund underperformed its benchmark on a pretax basis by almost 2% per year.
In the last month Shiner has underperformed the market by 27.3% and in the last year by 42.8%.
Asian Market Wrap: 20-year Treasury yields are up 0.4 bp at 2.943%, the 10-year JGB yield underperformed and climbed 1.0 bp to 1.03% as stock markets moved mostly higher across Asia, with trade quieter than usual as the summer lull sets in.
Mattel (MAT) upgraded to Neutral from Underperform at DA Davidson with analyst Linda Bolton Weiser saying while the company underperformed in Q2 as she expected due to the hard 2017 comparisons driven by last year's Cars 3 release and the impact from Toys R Us liquidation, investor belief that the company could be sold is supporting the stock.
FX Update: The dollar has firmed up while the yen has underperformed ahead of the London interbank open.
FX Update: The dollar has firmed up while the yen has underperformed amid a backdrop of mostly firmer global equity markets.
Chinese bond as well as stock markets underperformed and the 10-year yield rose 1.4 bp, while the CSI 300 dropped -1.32%, underperforming Nikkei and Topix, which are down -0.95% and -0.76% respectively.
As the common currency underperformed, the yen outperformed as market participants ran for safe havens.
The Nikkei closed down -2.32%, China and Hong Kong bourses underperformed and the CSI 300 is underperforming and down more than 5%.