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24 May
Rollins (ROL) Gains 15% in a Year: What's Behind the Rally?

Rollins, Inc. ROL has had an impressive run over the past year, appreciating 15%.

Commitment to shareholder returns makes Rollins a reliable way for investors to compound wealth. The company paid dividends of $264.3 million, $211.6 million and $208.7 million in 2023, 2022 and 2021, respectively.

Rollins, Inc. Price

The demand environment for this leading pest and termite control services provider is currently in good shape across all its business lines. Revenues increased 13.7% year over year in the first quarter of 2024. Business lines — residential, commercial and termite — registered 16.5%, 11.4% and 11.7% 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.

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 24 acquisitions in 2023, 31 in 2022 and 39 in 2021.

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 DocuSign DOCU and Barrett Business Services BBSI.

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

DOCU has a long-term earnings growth expectation of 13.3%. It delivered a trailing four-quarter earnings surprise of 23.7%, on average.

Barrett Business Services has a Zacks Rank of 2 (Buy). It has a long-term earnings growth expectation of 14%. BBSI delivered a trailing four-quarter earnings surprise of 38.7%, on average.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.