Reasons Why You Should Retain Rollins Stock in Your Portfolio Now

Rollins, Inc. ROL has had a mixed run over the past year. The stock has rallied 13.1% compared with the industry's 15.2% growth and the S&P 500’s 16.6% rise.Image Source: Zacks Investment ResearchThe company’s 2025 and 2026 earnings are expected to increase 12.12% and 11%, respectively, year over year.ROL Thrives on Growth, Efficiency and AcquisitionsRollins’ top line is bolstered by robust segmental performance and a strong demand environment. The company delivered solid second-quarter results, with revenues reaching $1 billion, up 12.1% year over year, driven by 7.3% organic growth. Improvement was observed across its key segments: residential (11.6%), commercial (11.4%), and termite and ancillary (13.9%).The company is boosting its operational efficiency by strengthening its platform to drive cross-selling, reduce costs and deliver faster, more effective customer service. Leveraging real-time service tracking and advanced customer communication technologies, it gains a competitive edge through superior service delivery and higher customer satisfaction. ROL’s proprietary Branch Operating Support System streamlines service tracking, payments and route management, cutting costs and improving customer retention.ROL's expansion strategy is primarily driven by acquisitions, which have significantly strengthened the company’s global presence and fueled revenue growth. Currently operating in around 70 countries, Rollins has completed 44 acquisitions in 2024, 24 in 2023, 31 in 2022 and 39 in 2021, highlighting its consistent focus on growth through strategic M&A (merger & acquisition) initiatives.Rollins also demonstrates its commitment to shareholders through consistent dividend payments, reflecting confidence in business performance. The company paid dividends of $298 million, $264.3 million, $211.6 million and $208.7 million in 2024, 2023, 2022 and 2021, respectively. In the second quarter of 2025, ROL paid dividends worth $79.46 million.ROL: Key Risks to WatchRollins’ operating expenses have steadily increased from $2.20 billion in 2022 to $2.49 billion in 2023 and $2.73 billion in 2024. This upward trend continued in the second quarter of 2025, with expenses jumping 12.9% year over year, signaling mounting cost pressures that could weigh on margins and profitability if not managed effectively.Moreover, Rollins’ current ratio (a measure of liquidity) at the end of the second quarter was 0.68, which was lower than the industry's 0.69. A current ratio of less than one indicates that the company may have problems paying off its short-term obligations.ROL’s Zacks Rank and Stocks to ConsiderROL currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader Zacks Business Services sector are Maximus MMS and AppLovin  (APP)   Maximus sports a Zacks Rank of #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here    MMS has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missing once. The average beat is 29.3%.AppLovin also sports a Zacks Rank of 1APP has an encouraging earnings surprise history, outperforming the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 22.36%. Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rollins, Inc. (ROL): Free Stock Analysis Report Maximus, Inc. (MMS): Free Stock Analysis Report AppLovin Corporation (APP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks