defensive stock

Defensive Securities

Low-risk securities, especially stocks in companies relatively unaffected by business cycles. In times of market downturn, investors tend to seek defensive securities to provide a steady rate of return, or at least to lose less money than the market as a whole. Examples include stocks in utility companies and the health care industry.

defensive stock

A stock that is resistant to general stock market declines. Stocks of electric utilities, gold and silver producers, and some consumer goods companies are considered defensive. Although defensive stocks resist downturns, they generally move up more slowly than other stocks during bull markets.
References in periodicals archive ?
Also, while timing a bet on a defensive stock can be tricky, even picking the shares which in that category may be becoming more difficult than it first appears.
Clark says the company is now the established industry leader: "eBay has proven that it's a defensive stock.
It should be a much more defensive stock than the other super majors because the trading business is driven by volatility of metal prices, not the absolute level.
Aramex, once considered a strong defensive stock, still finds favour with a few analysts, though not all.
Mourad said investors see it as a defensive stock and that its gain indicates further market declines are likely.
Mail on Sunday: Tobacco giant Imperial Tobacco (1949p) is a defensive stock which should weather the economic storm better than most.
If investors were shell-shocked last year when Dale Bryant, founder and portfolio manager of The Bryant Group, a money management firm in New York City, offered up defensive stock picks to fend off market volatility, they might be feeling a bit better if they followed his strategy.
Among Russian banking names, we favor shares in Sberbank, as the most defensive stock in the Russian banking universe.
One of the only other strong gainers was Commercial International Bank, a defensive stock that generally outperforms a weak market, according to brokers.
Typically, a technology stock will be far more volatile than a defensive stock in, say, the pharmaceutical or household products industries.
Aton's strategy team highlighted Rostelecom as a defensive stock in its note RUSSIAN EQUITY STRATEGY: Where to Hide in a Market Downturn: A Look in the RearaView Mirror, released on 8 Aug.
For those seeking UK exposure, Royal has traditionally been seen as a more defensive stock so investors are advised to buy.