Back to top

Image: Bigstock

Rollins Stock Rises 14% in a Year: What's Behind the Rally?

Read MoreHide Full Article

Rollins, Inc. (ROL - Free Report) has had an impressive run over the past year. The stock gained 14% against the industry’s 36% decline.

Healthy Demand, Dividend Payouts are Key Positives

Commitment to shareholder returns makes Rollins a reliable way for investors to compound wealth over the long term.The companypaid dividends of $298 million, $264.3 million, $211.6 million and $208.7 million in 2024, 2023, 2022 and 2021, respectively.

The demand environment for this leading pest and termite control services provider is currently in good shape across all its business lines. Revenues increased 10.3% year over year in the third quarter of 2023. Business lines — residential, commercial and termite — registered 9%, 10% and 13.6% growth, respectively.

Acquisitions are a significant catalyst for Rollins’ business development and are helping the company expand its global brand recognition and geographical footprint, along with boosting its revenues. Rollins has completed 99 acquisitions, including 44 acquisitions in 2024.

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.

Zacks Rank and Stocks to Consider

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

Some better-ranked stocks in the broader Zacks Business Services sector are AppLovin Corporation (APP - Free Report) and ABM (ABM - Free Report) .

AppLovin Corporation currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

APPhas a long-term earnings growth expectation of 20%. It delivered a trailing four-quarter earnings surprise of 23.5%, on average.

ABM currently carries a Zacks Rank of 2 (Buy) and expects long-term earnings growth of 5.2%. ABM delivered a trailing four-quarter earnings surprise of 11.6%, on average.


See More Zacks Research for These Tickers


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


ABM Industries Incorporated (ABM) - free report >>

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

AppLovin Corporation (APP) - free report >>

Published in