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Here's Why Investors Should Bet on Rollins (ROL) Stock Now

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Rollins, Inc.’s (ROL - Free Report) revenues witnessed a decent growth over the past five years. A balanced approach to organic and inorganic growth is the key to this success. The company’s organic revenue growth rate is healthy, driven by strong technician and customer retention.

Enhancing benefits are expected to improve employee and customer retention for the upcoming years. Furthermore, acquisitions have been acting as a major growth catalyst in Rollins’ business strategy.

Rollins believes in returning capital through dividends. Consistent dividend payment underscores the company's commitment to shareholders and underline its confidence in business. The company paid dividends of $211.6 million, $208.7 million and $160.5 million in 2022, 2021 and 2020, respectively.

Let’s take a look at some other factors that make the stock an attractive pick.

Solid Rank & VGM Score: Rollins currently carries a Zacks Rank #2 (Buy) and has a 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. Thus, the company seems to be an appropriate 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 2023 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2023 earnings has moved up 1.3% in the past 60 days.

Positive Earnings Surprise History: Rollins has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters (met once), delivering an earnings surprise of 5.9%, on average.

Strong Growth Prospects: The Zacks Consensus Estimate for 2023 earnings is pegged at 80 cents per share, which reflects year-over-year growth of 6.7%. Moreover, earnings are expected to register 9.4% growth in 2024.  

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) and ICF International, Inc. (ICFI - Free Report) .

Avis Budget currently carries a Zacks Rank #2 (Buy). CAR has a VGM score of A. Per our research the stock seems to be an appropriate investment proposition at the moment.

CAR delivered a trailing four-quarter earnings surprise of 78%, on average.

ICF International sports a Zacks Rank #1 at present. ICFI’s 2023 revenues and earnings are expected to have surged 10.4% and 6.4% year over year, respectively.

ICF International delivered a trailing four-quarter earnings surprise of 9.2%, on average.


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Avis Budget Group, Inc. (CAR) - $25 value - yours FREE >>

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ICF International, Inc. (ICFI) - $25 value - yours FREE >>

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