Rollins Stock Rises 14% in a Year: What's Behind the Rally?

Core Insights - Rollins, Inc. (ROL) has outperformed the industry with a stock gain of 14% while the industry declined by 36% over the past year [1] Financial Performance - The company has shown a strong commitment to shareholder returns, paying dividends of $298 million in 2024,$264.3 million in 2023, $211.6 million in 2022, and$208.7 million in 2021 [2] - Revenue growth for Rollins was 10.3% year over year in Q3 2023, with residential, commercial, and termite business lines growing by 9%, 10%, and 13.6% respectively [3] Business Development - Acquisitions play a crucial role in Rollins' growth strategy, with 99 acquisitions completed to date, including 44 in 2024, enhancing brand recognition and geographical reach [4] - The proprietary Branch Operating Support System aids in service tracking and payment processing, improving route efficiency and customer retention through enhanced service response [5] Market Position - Rollins holds a Zacks Rank of 3 (Hold), indicating a stable market position [6] - Comparatively, AppLovin Corporation (APP) has a Zacks Rank of 1 (Strong Buy) with a long-term earnings growth expectation of 20% and an average earnings surprise of 23.5% over the last four quarters [6] - ABM, with a Zacks Rank of 2 (Buy), anticipates long-term earnings growth of 5.2% and has delivered an average earnings surprise of 11.6% over the last four quarters [7]