Rollins (ROL) Gains 13% in 6 Months: What's Behind the Rally?
Rollins, Inc. ROL has gained 13.2% in the past six months, outperforming the 12.5% growth of the industry it belongs to.
Reasons Behind the Rally
The demand environment for this leading pest and termite control services provider remains in good shape, driven by strong construction activity. Revenues increased 14.9% year over year in the second quarter of 2023, with all its business lines — residential, commercial and termite — registering growth.
Rollins, Inc. Price
Rollins, Inc. price | Rollins, Inc. Quote
Rollins has developed its operating platform in a way that it 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.
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. Notably, Rollins completed 31 acquisitions in 2022, 39 in 2021 and 31 in 2020.
Rollins believes in returning capital through dividends. Consistent dividend payment underscores the company's commitment to shareholders and underlines its confidence in business. It paid dividends of $211.6 million, $208.7 million and $160.5 million in 2022, 2021 and 2020, respectively.
Zacks Rank & Stocks to Consider
Rollins currently carries a Zacks Rank #3 (Hold).
The following better-ranked stocks from the Business Services sector are worth consideration:
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CRA International CRAI beat the Zacks Consensus Estimate in two of the four trailing quarters and missed on two instances, the earnings surprise being 5.1%. The current Zacks Consensus Estimate for revenues indicates a 6.6% increase from the year-ago figure. The consensus mark for earnings is pegged at $5.49 per share, indicating a 7.6% year-over-year decline. CRAI carries a Zacks Rank #2 (Buy), at present.
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