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Rollins (ROL) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Rollins (ROL - Free Report) closed at $36.93, marking a -1.15% move from the previous day. This change lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow gained 0.21%, and the Nasdaq, a tech-heavy index, lost 0.81%.

Heading into today, shares of the operator of Orkin and other pest and termine control services had gained 3.49% over the past month, lagging the Business Services sector's gain of 7.5% and the S&P 500's gain of 6.55% in that time.

ROL will be looking to display strength as it nears its next earnings release, which is expected to be April 24, 2019. On that day, ROL is projected to report earnings of $0.15 per share, which would represent no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $431.10 million, up 5.47% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.79 per share and revenue of $1.98 billion. These totals would mark changes of +11.27% and +8.73%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for ROL. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. ROL is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, ROL currently has a Forward P/E ratio of 47.29. This represents a premium compared to its industry's average Forward P/E of 27.47.

Also, we should mention that ROL has a PEG ratio of 4.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ROL's industry had an average PEG ratio of 2.67 as of yesterday's close.

The Building Products - Maintenance Service industry is part of the Business Services sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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