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Rollins (ROL) Gains 21% in 3 Months: What's Behind the Rally?

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Rollins, Inc. (ROL - Free Report) has had an impressive run over the past three months. The stock has gained 21.1%, outperforming the 17.3% growth of the industry it belongs to and 8.8% rise of the Zacks S&P 500 composite.

Healthy Demand, Dividend Payouts are Key Positives

Rollinsis committed to shareholder returns, which makes it a reliable source for investors to compound wealth over the long term.The companypaid dividends of $211.6 million, $208.7 million and $160.5 million in 2022, 2021 and 2020, respectively.

The demand environment for this leading pest and termite control services provider is currently good across all its business lines. Revenues increased 15.2% year over year in the third quarter of 2023. Business lines — residential, commercial and termite — registered 19.7%, 11.8% and 11% growth, respectively.

Rollins, Inc. Revenue (TTM)

Rollins, Inc. Revenue (TTM)

Rollins, Inc. revenue-ttm | Rollins, Inc. Quote

Rollins has developed its operating platform in a way that increases cross-selling opportunities and cost efficiency and facilitates swift customer service delivery. The company’s real-time service tracking and customer Internet communication technologies have increased its competitive advantage.

Its proprietary Branch Operating Support System facilitates service tracking and payment processing for technicians. It provides virtual route management tools to increase route efficiency across the network, enabling cost reduction and increasing customer retention through quick response service.

Zacks Rank and Stocks to Consider

ROL currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the broader Business Service sector.

Gartner (IT - Free Report) :TheZacks Consensus Estimate for Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure. Its earnings are expected to decline 1.9% year over year. The company beat the consensus estimate in each of the four quarters, with the average surprise being 34.4%.

IT sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Broadridge Financial Solutions (BR - Free Report) :The Zacks Consensus Estimate for Broadridge’s fiscal 2024 revenues indicates 7.7% growth from the year-ago figure. Its earnings are expected to grow 10.1% year over year. The company beat the consensus estimate in three of the past four quarters and matched once, with the average surprise being 5.4%.

BR currently carries a Zacks Rank of 2 (Buy).


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