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6 Reasons Why You Should Invest In Rollins (ROL) Stock Now

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Rollins, Inc. (ROL - Free Report) performed impressively on a year-to-date basis and has the potential to sustain the momentum going forward. Therefore, if you have not taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio.

Let’s check out what makes the stock an attractive pick.

An Outperformer

A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Shares of Rollins have surged 63.4% compared with 36.1% rise of the industry it belongs to.

Solid Zacks Rank

Rollins has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions

The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. One estimate for 2020 moved north in the past 60 days versus no downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2020 inched up 5.4%.

Earnings-Surprise History

Rollins has an impressive earnings surprise history. The company has a trailing four-quarter earnings surprise of 5.6%, on average.

Strong Growth Prospects

The Zacks Consensus Estimate for 2020 earnings is currently pegged at 78 cents, which indicates year-over-year growth of 6.9%. Further, earnings are expected to rise 8.6% in 2021.

Growth Factors

Rollins is benefiting from its balanced approach to organic and inorganic growth.The company’s organic revenue growth rate is healthy driven by strong technician and customer retention.

Moreover, acquisitions are a major growth catalyst in Rollins’ business strategy. Notably, the company completed 13 acquisitions during the first half of 2020. It made 30 acquisitions in 2019, 38 in 2018 and 23 in 2017.

Although many companies across diverse sectors have suspended dividend payouts amid the coronavirus crisis, Rollins is one of the few that are sailing through the tough economic time and maintaining dividend payouts. On Jul 28, the company announced a quarterly cash dividend of 8 cents payable on Sep 10 to shareholders on record as of Aug 10. Rollins has a track record of consistent dividend payment. It paid out $153.8 million, $152.7 million and $122 million in dividends during 2019, 2018 and 2017, respectively.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Republic Services (RSG - Free Report) , ManpowerGroup Inc. (MAN - Free Report) and ICF International (ICFI - Free Report) , each carrying a Zacks Rank #2 (Buy).

The long-term expected earnings per share (three to five years) growth rate for Republic Services, ManpowerGroup and ICF International is 7.9%, 1.5% and 10%, respectively.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.

With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.

The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.

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