Each type of stock has its own unique set of characteristics ranging from how they are valued to their historical performance during different phases of the business and market cycles. One thing to remember about classifying stocks is that the lines of demarcation between types are not precise and clear. In fact, there are times when a stock can fall into several categories. For example, a utility stock can be classified as both an income and a defensive stock.
Stocks can also lose their status.
Fortunately, new management has since redirected the company's focus and the stock has recovered part of the decline. They usually hold key, if not leading, positions in their industry. The companies have the fundamental strength and size to hold their own during a recession and enough resources to capitalize on an economic recovery. By and large, investors who seek safety and stability and are conservative in their approach to investing will turn to this group. The firms are usually aggressive, research minded and will facilitate their expansion by plowing their earnings back into the business.