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Here's Why You Should Add Rollins' Stock to Your Portfolio

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Rollins, Inc. (ROL - Free Report) has performed extremely well year to date and has the potential to sustain the momentum going forward. Therefore, if you have not taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio.

Let’s check out what makes the stock an attractive pick.

An Outperformer

A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Shares of Rollins have gained 47%, outperforming the 23.3% rise of the industry it belongs to.

Solid Rank & VGM Score

Rollins has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (“VGM” Score) of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions

Two estimates for 2020 moved north in the past 60 days versus no downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2020 inched up 6.2%.

Strong Growth Prospects

The Zacks Consensus Estimate for 2020 revenues is currently pegged at $2.1 billion, indicating year-over-year growth of 4.3%. Further, revenues are expected to grow 6.2% in 2020

Growth Factors

A balanced approach to organic and inorganic growth continues to benefit Rollins’ top line.  Strong customer and employee retention keep organic revenues in good shape. Acquisitions are helping the company expand globally. It made 30 and 38 acquisitions in 2019 and 2018 respectively. Notably, Rollins’ total revenues were up 13.7% year over year in the last-reported quarter.

Although many companies across diverse sectors have suspended dividend payouts amid the coronavirus crisis, Rollins remains one of those few that are sailing through the tough economic time while maintaining dividend payouts. On Apr 28, the company announced a quarterly cash dividend of 8 cents payable on Jun 10 to shareholders as of record May 11.

Rollins has a track record of consistent dividend payment. It had paid $153.8 million, $152.7 million and $122 million in dividends during 2019, 2018 and 2017 respectively.

Other stocks to Consider

Some other top-ranked stocks in the broader Business Services sector are DocuSign (DOCU - Free Report) and SailPoint Technologies and Fiserv , each carring a Zacks Rank #2 (Buy).

The long-term expected earnings per share (three to five years) growth rate for DocuSign, SailPoint and Fiserv are 31.2%, 15% and 12.9 respectively.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.

The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.

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