Reasons Why You Should Retain Rollins Stock in Your Portfolio

Shares of Rollins, Inc. ROL have gained 30.6% over the past year, almost in line with the industry’s 30.5% growth.

The company’s fourth-quarter 2025 earnings are expected to increase 17.4% year over year. Its 2025 and 2026 earnings are expected to rise 15.1% and 10.2%, respectively. Revenues are expected to grow 11.4% in 2025 and 9.3% in 2026.

Factors That Bode Well for ROL

ROL is adding resources and support to the dedicated commercial division within its subsidiary, Orkin, a provider of residential and commercial pest and termite control services. The division is growing and has the highest customer retention rate among the company’s service lines.

Rollins, Inc. Revenue (TTM)

Rollins, Inc. revenue-ttm | Rollins, Inc. Quote

ROL leverages technological advancement for its collective growth. Investments in digital tools like BOSS, VRM, Orkin 2.0, BizSuite and InSite enable the company to provide its offerings more efficiently. BOSS, a smartphone-based service management tool, empowers technicians with customer handling, enabling faster payments and streamlined customer support.

VRM and Orkin 2.0 significantly maximize routing and scheduling, reducing technician mileage and improving service speed. BizSuite adds to the commercial sales process with real-time quoting and site mapping, while InSite gives commercial clients robust visibility into pest control activities across multiple locations. These innovations improve margins by reducing operational costs and strengthening client relationships through transparency and convenience.

The recent acquisitions of Saela Holdings and FPC Holdings are providing the company with new geographical exposure to favorable regions. Saela is expected to generate revenues in the mid-$60 million range in mid-2026.

Rollins is also focusing on media engagements through advertisements on social media such as TikTok and Facebook, with targeted consumers aged 30 to 45 years, typically home buyers who are likely to require pest control. The company aims to keep its price increments above the general Consumer Price Index (CPI) rate through its CPI-plus focus, which includes 3%-4% pricing strategies. These are helping in easing the inflation effect.

A Risk

ROL had a current ratio of 0.77 in the third quarter of 2025, lower than the industry average of 0.78. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations.

Zacks Rank & Stocks to Consider

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

A couple of better-ranked stocks in the broader Zacks Business Services sector are AppLovin Corporation APP and Trane Technologies TT.

AppLovin holds a Zacks Rank #2 (Buy) at present. APP has a long-term earnings growth expectation of 20%. The company delivered a trailing four-quarter earnings surprise of 15.3% on average.

Trane Technologies also holds a Zacks Rank of 2 at present, with a long-term earnings growth expectation of 13.3%. TT delivered a trailing four-quarter earnings surprise of 4.9% on average.

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This article originally published on Zacks Investment Research (zacks.com).

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