As the second-quarter earnings season comes to a close, investors have greater insights into how companies are faring in the pandemic. Not surprisingly, many businesses have experienced revenue declines as consumers pulled back on discretionary spending, but a few have  seen top-line accelerations. Let's take a closer look at three stocks that are defying the odds and have seen their fortunes boosted during the pandemic.

E-commerce giant Amazon (AMZN 1.60%) saw a massive surge as people shopped online more while staying at home. Telehealth specialist Teladoc (TDOC 0.62%) had patients trying its virtual health services to experience a convenient, virus-free doctor's visit. Tractor Supply Company's (TSCO 0.47%) essential retailer status made its brick-and-mortar stores a go-to for rural ranchers and farmers and others to stock up on supplies during the pandemic.

As a result, this trio saw solid, double-digit revenue gains from Q1 to Q2 and accelerating year-over-year revenue growth.




Tractor Supply

Q1 2020 revenue

$75.5 billion

$180.8 million

$1.96 billion

Q1 year-over-year revenue growth




Q2 2020 revenue

$88.9 billion

$241.0 million

$3.18 billion

Q2 year-over-year revenue growth




Q2 versus Q1 growth




Year-to-date stock gains through 8/31/2020




Data source: Company earnings reports and Yahoo! Finance.

Across the board, these growth numbers are impressive and have rewarded shareholders with tremendous year-to-date stock gains. Let's look more closely into each to see why and if they will be able to sustain their momentum.

Amazon's e-commerce engine rolls on

By late April, Amazon had added 175,000 employees to help deal with the increased demand and stepped-up safety measures in its fulfillment centers. In Q2, online grocery sales tripled year over year, Prime member growth accelerated, and sales by its third-party sellers grew faster than its online business and represent more than half of all units shipped. Not to be outdone, its Amazon Web Services segment continues to be a cash cow, representing 57% of its net income despite being only 12% of revenue.

With no end in sight to social distancing measures, it's likely that consumers' expanded e-commerce habits will become permanent and Amazon will continue to benefit.

A drawing of a doctor wearing a mask and holding a large umbrella to shield himself against large floating virus particles.

Image source: Getty Images.

Telehealth is here to stay

Before this year, most people had never considered a virtual visit to their healthcare professional. Then came the pandemic. Teladoc saw record visits in Q2 of 2.76 million, a tripling from  the year-ago quarter, increasing sequentially from Q1 2020 an amazing 156%, and surpassing its full-year 2018 mark. It added 8.5 million new subscribers in the quarter, and the percentage of members utilizing the service rose to an all-time high of 16%. Through all this incredible growth, the company reported increased patient satisfaction scores.

This trend seems to be a long-term change in patient behavior as management in the most recent earnings call cited a McKinsey survey that indicated that "60% of U.S. providers now view telehealth more favorably than prior to the pandemic" and that over $250 billion of U.S. healthcare spend could be moved to virtual formats over time. This huge opportunity combined with its recent merger with Livongo Health will provide this telehealth leader plenty of growth runway.

This brick-and-mortar retailer is thriving

As the pandemic spread, Tractor Supply quickly implemented new capabilities to improve its retail experience. In addition to adding 5,000 team members in its stores and distribution centers, it implemented curbside pickup, same-day and next-day delivery, and relaunched its website. These new features help propel triple-digit increases in online purchases and buy-online, pick-up-in-store transactions. But that's just the beginning of the remarkable stats.

Same-store sales increased 30.5% year over year in the most recent quarter, driven by gains in the number of transactions and average ticket size. It attracted 3.3 million new customers, a nearly 14% increase; "reengaged" 2 million lapsed customers; and ended the quarter with almost 17 million loyalty club members. President and CEO Harry Lawton explained that the company is benefiting from numerous macro trends, including "rural revitalization ... consumer spending shifting from travel and entertainment ... [to] home and land; and of course, pet adoptions, they're at an all-time high."

This niche retailer survived the 2008/2009 recession, is thriving today, and should continue to grow as it continues to attract loyal customers.

Is this trio recession-immune too?

Being immune to the coronavirus is one thing, but investors may be worried about an extended recession. With numerous uncertainties around the economy and no end in sight to the health crisis, most management teams are forgoing guidance. But these three bucked that trend and have provided solid revenue growth projections for the upcoming quarter.




Tractor Supply

Management's Q3 revenue guidance

$87 billion to $93 billion

$275 million to $285 million*

$2.30 billion to $2.42 billion

Projected Q3 year-over-year growth 

24% to 33%

100% to 107%

12% to 18%

Cash and marketable securities

$71.4 billion

$1.3 billion

$1.3 billion

*Includes In-Touch Health acquisition. Data source: Company earnings reports.

With their successful business models, solid growth in the face of an uncertain economy, and significant cash resources, this trio may not be totally recession-proof but they are certainly well positioned to weather an extended downturn.

Given all that this "coronavirus-immune" trio has going for them, you might consider adding one or all to your portfolio.