With operations in multiple segments, companies, represented by diversified stocks, are known for their presence across multiple industries. Their business operations are not limited to a particular sector, and they offer a range of products and services. Diversification of business mitigates the risk. At the same time, they can capitalise on different market opportunities and opt for multi-sectoral corporate strategies. Companies with diversified businesses can earn profit from multiple revenue streams and maintain consistent performance. Most of these firms are well established and offer an opportunity for stable investment. If you are planning to invest in any diversified sector stocks, it will be prudent to analyse the operational and financial details of the company before investing.