What's outperform

Outperform is a term used in finance and investing to describe a situation where a company or security has produced a better rate of return than similar companies or securities in the same industry or index. It is commonly used as a rating given by analysts who publicly research and recommend securities, indicating that they believe the security will produce higher returns than the major market indexes. The term is also used to describe how the returns of one investment compare to another, and is most commonly applied to a comparison between one investment and the market in general. Investment professionals almost always compare investment returns with a benchmark index, such as the S&P 500 index, so the term is often used in reference to whether a particular investment has outperformed the S&P 500. Another common usage of the term is as a description of how the returns of one investment compare to another. For example, if an investment fund uses the Standard & Poor's 500 Index as a benchmark, and if the portfolio manager of that fund analyzes stocks with a market capitalization similar to securities in the index and forecasts that 15 particular stocks will generate a higher rate of earnings per share (EPS) than the average for the index, the fund is said to be outperforming the benchmark index. In summary, outperforming in stock trading generally refers to a stock that has performed better than the overall market returns or relative to its peers within the same industry or index. It is a term used by analysts to describe the prospects of a particular company, indicating that the company will do better than its peers in the same industry.