Defensive stocks are stocks that investors believe will outperform the stock market during periods of economic decline or market turbulence. For the uninitiated, defensive stocks tend to be companies that provide essential goods or services, such as food, healthcare, or utilities. They also tend to have strong balance sheets and generate consistent cash flow. As a result, they are less sensitive to economic cycles than other stocks.
While defensive stocks may not provide the same upside potential as more risky investments, they can help to protect investors from losses in a down market. Defensive stocks can also provide stability and income during periods of market volatility. However, they may also underperform during bull markets. As a result, investors should carefully consider their investment objectives before adding defensive stocks to their portfolios. With this being said, check out these three defensive stocks in the stock market today.
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