Back to top

Image: Shutterstock

Reasons Why You Should Hold Rollins (ROL) Stock Now

Read MoreHide Full Article

Rollins, Inc. (ROL - Free Report) has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. The stock has had an impressive run over the past year, appreciating 29%.

The company’s earnings for 2024 and 2025 are expected to increase 11.1% and 10.7%, respectively, year over year. ROL has a long-term (three to five years) expected earnings growth rate of 12.8%.

Factors That Augur Well for Rollins

The demand environment for this leading pest and termite control services provider is currently in good shape across all its business lines. Revenues increased 8.7% year over year in the second quarter of 2024. Business lines — residential, commercial and termite — registered 6.3%, 9.9% and 11.8% growth, respectively.

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 and provides virtual route management tools to increase route efficiency across the network, enabling cost reduction and increasing customer retention through quick response service.

Consistent dividend payment underscores the company's commitment to shareholders and underlines its confidence in business. It paid dividends of $264.3 million, $211.6 million and $208.7 million in 2023, 2022 and 2021, respectively.

A Risk for ROL

Rollins’ current ratio (a measure of liquidity) at the end of the second quarter was pegged at 0.78, lower than the year-ago quarter's 0.81. A current ratio of less than 1 indicates that the company may have problems paying off its short-term obligations.

Zacks Rank & Stocks to Consider

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

A couple of better-ranked stocks from the broader Zacks Business Services sector are Genpact (G - Free Report) and Jamf (JAMF - Free Report) .

Genpact carries a Zacks Rank of 2 (Buy) at present. It has a long-term earnings growth expectation of 8.4%.G delivered a trailing four-quarter earnings surprise of 6.9%, on average. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Jamf currently carries a Zacks Rank of 2. The company has a long-term earnings growth expectation of 57%. JAMF delivered a trailing four-quarter earnings surprise of 15.7%, on average.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Genpact Limited (G) - free report >>

Rollins, Inc. (ROL) - free report >>

Jamf Holding Corp. (JAMF) - free report >>

Published in