/Rollins%2C%20Inc_%20phone%20and%20website-%20by%20T_Schneider%20via%20Shutterstock.jpg)
Atlanta, Georgia-based Rollins, Inc. (ROL) is a premier global consumer and commercial services company. Valued at $24.2 billion by market cap, the company provides essential pest and wildlife control services and protection against termite damage, rodents, and insects to residential and commercial customers.
Shares of this global leader in route-based pest-control services have outperformed the broader market considerably over the past year. ROL has gained 27.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. However, in 2024, ROL’s stock rose 15.1%, compared to the SPX’s 16.8% rise on a YTD basis.
Zooming in further, ROL’s outperformance looks more pronounced compared to the iShares U.S. Consumer Focused ETF (IEDI). The exchange-traded fund has gained about 23.7% over the past year. Moreover, ROL’s gains on a YTD basis outshine the ETF’s 12.5% returns over the same time frame.
ROL’s overall performance can be attributed to a robust demand environment for its services, which has helped drive the company's success.
On Jul. 24, ROL reported its Q2 earnings results, and the stock tumbled by 6.5% in the next trading session. Its adjusted EPS of $0.27 matched Wall Street expectations. The company’s revenue was $891.9 million, exceeding forecasts of $890.7 million.
For the current fiscal year, ending in December, analysts expect Rollins’ EPS to grow 11.1% to $1 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 10 analysts covering ROL stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration is more bullish than a month ago, with four analysts suggesting a “Strong Buy.”
On Jul. 26, Morgan Stanley (MS) analyst Toni Kaplan maintained a “Hold” rating on ROL with a price target of $46.
While ROL currently trades slightly at a premium to its mean price target of $50.22, the Street-high price target of $54 suggests an upside potential of 7.5%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
