Definition: This term has two definitions.
1.) In investing, it's what every investor wants to do (outperform the market, that is).
2.) It's also a rating a stock analyst might give a stock. If the stock is expected to earn a better return than other stocks, it's rated as "outperform."
TeenAnalyst Advice: Everyone is trying to outperform the market all the time. It's a very difficult thing to do. In fact, only about 15-20% of all mutual funds do it.
When talking about "beating the market," most people are referring to the S&P 500, which is an index of 500 of the largest companies in America.