Defensive Company
A company whose sales and earnings remain relatively stable during both economic upturns and downturns.
Investopedia Commentary
Companies within the utilities industry, such as water and electricity companies, are defensive companies since their goods and services have inelastic demand.
The stock of defensive companies is often classified as defensive stock.
Related Links
Cyclical Versus Non-Cyclical Stocks
The Ups And Downs Of Investing In Cyclical Stocks
Surviving Bear Country
See also: Business Cycle, Defensive Stock, Elasticity, Utility