As signs of economic uncertainty mount—most recently, a dismal jobs report for the month of August, coupled with a small increase in the unemployment rate, threatened the market—investors may increasingly turn to stocks that they view as resilient plays amidst volatility.
This stability can come from different sources. Some companies may have a big enough market share or a niche product lineup to insulate them from outside disturbances, while others might be part of defensive sectors that are less vulnerable.
Recurring revenue is one often-overlooked characteristic that may help some firms remain strong despite weakening economic conditions. Steady recurring revenue—typically through long-term contracts, subscriptions, or other offerings generating regular payments from consistent customers—can signal a loyal user base that may stick around even if they have to tighten their belts a bit.
Amazon Partnership, Growing Revenue and Streaming Hours Boost Roku's Profile
Streaming hardware and platform provider Roku Inc. (NASDAQ: ROKU) has fallen from its pandemic-era highs, but shares are still up an impressive 29% year-to-date (YTD). The streaming service landscape has continued to shift, with 83% of U.S. adults using these services—and many subscribing to multiple platforms at once.
Roku's platform makes it easy to manage multiple subscriptions through a single access point. The company caters to more than 90 million households, and advertisers are keen to partner with Roku for the access it provides.
Roku's recent advertisement sharing deal with Amazon (NASDAQ: AMZN) will likely only further boost the smaller firm's appeal to advertiser customers. Coupled with that strong growth in platform revenue, the key recurring portion of Roku's revenue stream, and it's clear that the company offers a compelling case for its stability.
Roku's platform revenue climbed by 18% year-over-year (YOY) in the latest quarter, driven by 80% increase in streaming hours over the same period.
Analysts have broadly positive sentiment surrounding ROKU shares, with 21 out of 28 calling the stock a Buy. Investors, too, are bullish on the company—short interest has plunged by more than 30% in the last month.
Dominant Player in the Solar Industry Appears Positioned to Avoid Negative Regulatory Impacts
Solar power system and component provider First Solar Inc. (NASDAQ: FSLR) faces a unique set of opportunities and challenges. While the clean energy space is threatened by regulatory shifts and tariffs in the United States, First Solar's dominance has allowed it to weather the storm more successfully than some of its rivals.
Key aspects of First Solar's position are its technological dominance and its higher margins.
While the company's revenue heavily depends upon one-time sales of large volumes of solar panels and hardware to large-scale operators, its recurring revenue-generating business is increasingly important. This includes the customers paying for service and maintenance agreements on their solar systems.
The company also builds customer loyalty by offering a specialized product line-up catering to commercial clients rather than aiming to attract residential customers.
Looking ahead, First Solar appears both well-positioned to continue to grow—its backlog is among the largest in the business and it's continuing to expand its domestic capacity, according to the firm's latest earnings report—and resilient to tariffs thanks to its U.S. manufacturing focus.
Out of 28 analysts, 24 rate FSLR as a Buy, partly because of these reasons.
Franchise Model Drives Recurring Revenue for Wingstop
While fast food restaurants may not be the first companies investors think of when it comes to recurring revenue, Wingstop Inc. (NASDAQ: WING) has a model that heavily favors recurring payments. Specifically, as of the end of the second quarter of 2025 some 84% of all domestic Wingstop locations were franchise restaurants.
Royalty and franchise fees grew YOY for that period, even as domestic same-store sales fell slightly.
Wingstop's efforts to solidify its customer base are also ongoing and successful. The company's smart kitchen rollout has been successful in more than 1,000 locations so far, dramatically reducing ticket times and boosting customer satisfaction scores.
Further, the relaunch of a popular chicken tenders item tripled new and reactivated guest counts.
Out of 29 analysts, 24 rate WING shares as a Buy, and the company's upside potential looks impressive at 39% based on a consensus price target of $380.52.
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The article "3 Stocks Positioned to Win With Strong Recurring Revenue Streams" first appeared on MarketBeat.
