- 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. Bloomberg Financial Dictionary
* * *outperform out‧per‧form [ˌaʊtpəˈfɔːm ǁ -pərˈfɔːrm] verb [transitive]to do better or be more successful than someone or something else:
• Stocks generally outperform other investments.
• Clinical trials have shown that it outperforms existing drugs.
* * *outperform UK US /ˌaʊtpəˈfɔːm/ verb► [I or T] STOCK MARKET, FINANCE if shares, bonds, etc. outperform, or if they outperform a particular stock market or financial market, they produce more money for investors than other shares, bonds, etc. of a similar type: »
Commodities futures have produced better annual returns than stocks and outperformed bonds even more.»
In the short term, equities are higher risk, but over the long term they are less risky because they will outperform.outperform the (stock) market/index »
The latest Fortune survey of business performance in the US showed that new and diverse companies outperform the stock market.► [T] to be more successful than other companies or countries: »
Employment reports suggest that the US economy will outperform Europe in the months to come.outperform (your) competitors/rivals »
In order to achieve dramatic improvements and outperform competitors, a corporation often needs to make radical changes.
Financial and business terms. 2012.