What Is an Overweight Stock?

By Matthew DiLallo – Updated Oct 13, 2025 at 7:00 PM

Key Points

Analysts use an "overweight" rating to suggest buying more shares to boost stock's portfolio share.
Overweighting a stock can double its average portfolio percentage, indicating strong belief in its performance.
High portfolio overweight like Buffett's 46.9% in Apple indicates high confidence and potential growth focus.

An overweight stock is a term used to describe a stock's weighting in an investment portfolio. Financial analysts use the term to rate a stock they believe investors should have a higher allocation relative to the market benchmark or other similar companies. An overweight stock can also mean that an investor has a large allocation to a stock in their portfolio.

Here's a look at what an overweight stock rating means, why analysts use the term, how to overweight a stock, and some examples.

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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Matt DiLallo has positions in Apple and Berkshire Hathaway and has the following options: short November 2025 $260 calls on Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.