Reasons Why You Should Retain Rollins Stock in Your Portfolio Now

Rollins, Inc. ROL shares have rallied 12.3% in a year compared with the 12% growth of the Building Products - Maintenance Service industry and 21.9% gain of the S&P 500 composite.

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ROL’s revenues are anticipated to increase 9.05% and 8.2% year over year in 2026 and 2027, respectively. Earnings are estimated to rise 10.7% in 2026 and 12.08% in 2027. The company has an estimated long-term (three to five years) earnings growth rate of 13.1%.

Factors That Augur Well for ROL

Rollins top line is bolstered by robust segmental performance and a strong demand environment. The company delivered solid fourth-quarter 2025 results, with revenues reaching $913 million, up 9.7% year over year, driven by 5.7% organic growth. Improvement was observed across its key segments: residential (4.4%), commercial (6.4%), and termite and ancillary (7.6%).

ROL is strengthening its commercial pest-control operations by adding resources and support to the commercial division of its subsidiary, Orkin. The division continues to grow and maintains the highest customer retention rate among the company’s service lines, reflecting strong demand from commercial clients.

The company is deploying technology platforms such as VRM and Orkin 2.0 to optimize routing and scheduling, reduce technician mileage and improve service speed. Tools like BizSuite and InSite further enhance the commercial sales process through real-time quoting, site mapping and improved visibility for multi-location customers. This helps the company lower operating costs, strengthen client relationships and improve margins.

Rollins leverages technological advancements to drive growth and improve operational efficiency. The company uses digital tools such as BOSS, VRM, Orkin 2.0, BizSuite and InSite to streamline service delivery, boost technician productivity and enhance customer engagement. BOSS, a smartphone-based service management platform, allows technicians to handle customer interactions, process faster payments and provide more efficient service.

The company expands customer outreach through targeted advertising on platforms like TikTok and Facebook, focusing on consumers aged 30 to 45, particularly homebuyers who are more likely to need pest-control services. At the same time, the company maintains pricing power through a CPI-plus strategy, targeting annual price increases of 3-4% to help offset inflationary pressures and support margins.

ROL 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 fourth quarter of 2025, the company paid dividends worth $88 million.

ROL’s Key Risks to Watch

Rollins’ 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 throughout 2025, with expenses jumping 11.1% year over year, signaling mounting cost pressures that could weigh on margins and profitability if not managed effectively.

Rollins’ current ratio (a measure of liquidity) at the end of the 2025 was 0.60, lower than the prior year's ratio of 0.69. A current ratio of less than one indicates that the company may have problems paying off its short-term obligations.

Zacks Rank & Stocks to Consider

ROL currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks for investors’ consideration are Dave Inc. DAVE and Maximus MMS.

Dave currently carries a Zacks Rank #2 (Buy). The company has an expected earnings growth rate of 6.8% and 24.4% for 2026 and 2027, respectively.

DAVE has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 54.2%.

Maximus presently carries a Zacks Rank of 2. MMS has an expected earnings growth rate of 15% and 5.04% for fiscal 2026 and 2027, respectively.

The company has an encouraging earnings surprise history as it has topped the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average earnings surprise of 25.5%.