Source: https://mochatrade.com/learn/glossary/cyclical-vs-defensive-stocks

# Cyclical vs defensive stocks
URL: https://mochatrade.com/learn/glossary/cyclical-vs-defensive-stocks
Last modified: 2026-10-17

Cyclical stocks earn more when the economy grows and less when it shrinks: discretionary, industrials, materials, energy, financials. Defensive stocks earn about the same either way: staples, health care, utilities. It is [the growth line through the sectors](https://mochatrade.com/learn/us-market-structure/how-us-stock-prices-form), driven by [jobs](https://mochatrade.com/learn/us-market-structure/us-jobs-report-explained) and [growth data](https://mochatrade.com/learn).

## Related terms

- GICS sectors: https://mochatrade.com/learn/glossary/gics-sectors
- Growth vs value stocks: https://mochatrade.com/learn/glossary/growth-vs-value-stocks
- Sector ETF: https://mochatrade.com/learn/glossary/sector-etf
- QQQ ETF: https://mochatrade.com/learn/glossary/qqq-etf
- Nonfarm payrolls: https://mochatrade.com/learn/glossary/nonfarm-payrolls
- Retail sales: https://mochatrade.com/learn/glossary/retail-sales