Reasons Why Hold Strategy is Apt for Rollins (ROL) Stock Now

Group 1 - The company's earnings for 2024 and 2025 are expected to increase by 12.2% and 10% year over year, respectively, with a long-term expected earnings growth rate of 13% over three to five years [1] - Rollins, Inc. (ROL) has developed an operating platform that enhances cross-selling opportunities and cost efficiency, while also facilitating swift customer service delivery [13] - The demand environment for Rollins, a leading pest and termite control services provider, is strong, with revenues increasing by 13.7% year over year in Q1 2024, driven by growth in residential (16.5%), commercial (11.4%), and termite (11.7%) business lines [5] Group 2 - Rollins has a current ratio of 0.72 at the end of Q1, indicating potential challenges in meeting short-term obligations, compared to 0.79 in the same quarter last year [14] - The company has consistently paid dividends, totaling $264.3 million in 2023, $211.6 million in 2022, and $208.7 million in 2021, reflecting its commitment to shareholders [9] - Rollins currently holds a Zacks Rank of 3 (Hold), while Booz Allen Hamilton (BAH) has a long-term earnings growth expectation of 14% and a Zacks Rank of 2 (Buy) [10][4][15]