A choppy, indecisive market requires a defensive play or two as a safety net, and a defensive stock worthy of consideration is Newell Rubbermaid (NYSE: NWL).

Newell Rubbermaid doesn't strictly fit the definition of a defensive stock, but its signature product, combined with its overall diversity in the consumer product space, make the stock a worthy consideration.

Newell Rubbermaid's signature product is the food storage container. At first glance, one could argue that U.S. shoppers will buy fewer of these containers as the U.S. economy slows, as it is, strictly speaking, a discretionary purchase. Still, we know from previous belt-tightening periods Americans tend to cut back on dining out. Undoubtedly that means more home prepared meals, and leftovers, which need containers -- a positive trend for Rubbermaid.
Also, NWL's office products (30% of 2006 revenue) and tools & hardware (20% of 2006 revenue) divisions should perform reasonably well in 2007, bolstered by stronger international sales. In all, sales abroad accounted for about 26% of 2006 revenue, and that percentages is likely to climb in 2007. The Reuters F2007/F2008 EPS consensus estimates for NWL are $1.81/$1.99.

Further, the company has done a good job eliminating lower-margin product lines and containing costs as part of a 3-year restructuring initiated in 2006.

Those facts, combined with the Rubbermaid brand marketing advantage and fair p/e of 17 tip the risk/return scale in favor of NWL.

The drawbacks? Investors should not expect mega-growth from NWL. This is moderate-growth company in a predictable sector destined to have few surprises.

The First Call mean rating for NWL is: Buy. (10 firms.) Mean 2008 target: $34.70. (high: $38, low: $32.)

Stock Analysis: Newell Rubbermaid is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than one year should be rewarded from NWL's shares. Sell / Stop Loss if you were to purchase shares in this company: $18.