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Here's Why You Should Hold Rollins Stock in Your Portfolio

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Rollins, Inc. (ROL - Free Report) carries an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.

The company’s next five-year earnings growth is pegged at 7.1%. Earnings and revenues for 2020 are expected to grow 6.8% and 8.9%, respectively.

What’s Driving Rollins?

Rollins’ top line benefits from a balanced approach to organic and inorganic growth. Strong customer and employee retention is driving the company’s organic revenues. Acquisitions are helping it to expand globally. It made 29 acquisitions in the first nine months of 2019 and 38 in 2018.

Notably, Rollins’ total revenues were up 14.1% year over year in the last reported quarter. This included 7.7% from Clark and other acquisitions and the remaining 6.4% was from pricing and organic growth.

Rollins, Inc. Revenue (TTM)

The company generates substantial cash flows and has modest recurring capex needs. It has a consistent track record of dividend payout. In the first nine months of 2019, the company paid out $103.1 million in dividends. It paid out $152.7 million, $122 million and $109 million in dividends in 2019, 2018 and 2017, respectively.

 Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader Zacks Business Services sector are Advanced Disposal Services , The Western Union Company (WU - Free Report) and Accenture (ACN - Free Report) . While Advanced Disposal and Western Union sport a Zacks Rank #1 (Strong Buy), Accenture carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected EPS (three to five years) growth rate for Advanced Disposal, Western Union and Accenture is 10%, 12.3% and 10.3%, respectively.

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