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Reasons Why Investors Should Bet on Rollins Stock Right Now

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Key Takeaways

  • Rollins has gained 2.5% in three months, outperforming its industry's 1.1% rise.
  • Analysts lifted 2025 forecasts as estimates moved higher and earnings beat expectations.
  • Acquisitions and a growing Orkin commercial unit support Rollins' revenues and earnings outlook.

Rollins, Inc. (ROL - Free Report) , a provider of pest and termite control services, has performed decently over the past three months and has the potential to sustain the momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, you should add the stock to your portfolio.

What Makes ROL an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had a decent run over the past three months. Shares of Rollins have gained 2.5% compared with the 1.1% rally of the industry it belongs to.

Solid Rank: ROL currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: Five estimates for 2025 have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2025 earnings has moved up 1.8% in the past 60 days.

Positive Earnings Surprise History: ROL has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in two quarters and matched in the remaining two with an earnings surprise of 3.2% on average.

Strong Growth Prospects: The Zacks Consensus Estimate for Rollins’fourth-quarter 2025 revenues is pegged at $926.5 million, suggesting an increase of 11.3% from the year-ago quarter. For full-year 2025, the consensus estimate is pegged at $3.77 billion, indicating a year-over-year rise of 11.4%.

The consensus estimate for fourth-quarter 2025 earnings is pegged at 27 cents per share, indicating 17.4% year-over-year growth. For 2025, the consensus mark is pegged at $1.14 per share, implying 15.2% growth year over year.

Growth Factors: ROL is adding resources and support to its dedicated commercial division within Orkin. The division is growing and has the highest customer retention rate among the company’s service lines.

Acquisitions of Saela Holdings and FPC Holdings are providing the company with new geographies with exposure to favorable regions. Saela is expected to generate revenues in the mid-$60 million range till mid-2026.

  Rollins, Inc. Revenue (TTM)

Rollins, Inc. Revenue (TTM)

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

Rollins is also focusing on its media engagements through advertisements on social media such as TikTok and Facebook, with targeted consumers between the ages of 30 and 45 years, as they are the usual home buyers and will need pest control. Rollins aims to keep its price increments above the general Consumer Price Index (CPI) rate through its CPI-plus focus, which includes 3%-4% pricing strategies. These are helping in easing the inflation effect.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Genpact (G - Free Report)  and Palantir Technologies Inc. (PLTR - Free Report) .

Genpactcarries a Zacks Rank #2 at present. G has a long-term earnings growth expectation of 9.6%.

Genpact delivered a trailing four-quarter earnings surprise of 5.5% on average.

Palantir Technologies carries a Zacks Rank of 2 at present. PLTR has a long-term earnings growth expectation of 50%.

Palantir beat earnings estimates in three of the last four quarters and matched once, with an earnings surprise of 16.3% on average.


See More Zacks Research for These Tickers


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