Rollins, Inc. ( ROL ) is a global leader in pest control services. The company is operating through iconic brands like Orkin to protect homes and businesses from pests and termites. Its purpose is to deliverAlways on the hunt for undervalued, promising stocks with a focus on risk and reward. Limited risks and decent to high upside by knowing what one's owning. I strongly believe that the best investment ideas are often the simplest. If contrarian, the better.Analyst’s Disclosure:I/we have no stock, option o ...

Core Viewpoint - Rollins (ROL) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1][2]. - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - For Rollins, the rising earnings estimates and the rating upgrade indicate an improvement in the company's underlying business, which is expected to positively influence its stock price [5][10]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on four factors related to earnings estimates, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7][9]. - The upgrade of Rollins to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Rollins - For the fiscal year ending December 2025, Rollins is expected to earn $1.14 per share, which remains unchanged from the previous year, while the Zacks Consensus Estimate has increased by 2.7% over the past three months [8].

Core Viewpoint - Pest control company Rollins, which owns Orkin, is expected to remain unaffected by advancements in artificial intelligence, with JPMorgan analysts projecting a 20% upside for the stock [1] Company Summary - Rollins is recognized for its pest control services, primarily through its subsidiary Orkin [1] - The company is positioned to leverage its established market presence despite technological advancements in the industry [1] Industry Summary - The pest control industry is experiencing stability, with companies like Rollins adapting to changes without significant disruption from AI [1] - Analysts suggest that the market outlook for pest control services remains positive, indicating potential growth opportunities [1]

Company Overview - Rollins, Inc. (ROL) is a global leader in pest and termite control services, with a market cap of $27.3 billion and headquartered in Atlanta, Georgia [1] - The company operates in over 70 countries, providing services to both residential and commercial customers, which contributes to strong revenue diversification and stability [2] Financial Performance - In Q2, Rollins reported an adjusted EPS of $0.30, exceeding Wall Street expectations of $0.29, and its revenue reached $999.5 million, surpassing forecasts of $979.4 million [5] - The company's performance is supported by strong demand for pest control services and contributions from recurring service contracts and high customer retention rates [5] Stock Performance - Rollins shares recently reached a 52-week high of $59.10 on August 8, but are currently trading 6.6% below that peak [3] - Year-to-date, Rollins has gained 19.2%, outperforming the Consumer Discretionary Select Sector SPDR Fund (XLY), which rose 8% [4] - Over the past 52 weeks, ROL shares have increased by 8.5%, lagging behind the XLY's 26% rally [4] Competitive Landscape - In the pest control industry, Rollins has outperformed competitors such as H&R Block, Inc. (HRB), which has seen a decline of 22.1% over the past 52 weeks and is down 5% year-to-date [6]

Group 1 - Rollins reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.27 per share a year ago, representing an earnings surprise of +3.45% [1] - The company achieved revenues of $999.53 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.05%, compared to $891.92 million in the same quarter last year [2] - Rollins has outperformed the S&P 500, with shares increasing approximately 19.8% since the beginning of the year, compared to the S&P 500's gain of 7.3% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $1.01 billion, and for the current fiscal year, it is $1.10 on revenues of $3.73 billion [7] - The Building Products - Maintenance Service industry, to which Rollins belongs, is currently ranked in the top 6% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Group 1 - FactSet reported quarterly earnings of $4.27 per share, missing the Zacks Consensus Estimate of $4.31 per share, and down from $4.37 per share a year ago, representing an earnings surprise of -0.93% [1] - The company posted revenues of $585.52 million for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 0.72%, and up from $552.71 million year-over-year [2] - FactSet has surpassed consensus EPS estimates three times over the last four quarters, indicating a generally positive trend in revenue performance [2] Group 2 - The stock has underperformed the market, losing about 12.1% since the beginning of the year compared to the S&P 500's gain of 1.5% [3] - The current consensus EPS estimate for the coming quarter is $4.13 on revenues of $591.59 million, and for the current fiscal year, it is $17.10 on revenues of $2.31 billion [7] - The Zacks Industry Rank for Business - Information Services is in the top 11% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8]