Defensive Company

What Does Defensive Company Mean?
A company whose sales and earnings remain relatively stable during both economic upturns and downturns.

Investopedia explains Defensive Company
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 Terms

Business Cycle
Defensive Stock
Elasticity
Utility
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