What Makes Rollins (ROL) Conestoga Capital Advisors' Core Holding

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Mid Cap Strategy returned -5.75% net of fees compared to the Russell Midcap Growth Index’s -3.70% return. The underperformance was driven by negative stock selection in the Technology and Industrials sectors, while positive sector allocation effects partially eased underperformance. The Mid Cap Composite returned -4.73% net of fees for the full year 2025, trailing the benchmark return of 8.66%. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

 In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors highlighted Rollins, Inc. (NYSE:ROL). Headquartered in Atlanta, Georgia, Rollins, Inc. (NYSE:ROL) is a pest control company. On February 19, 2026, Rollins, Inc. (NYSE:ROL) stock closed at $60.92 per share. One-month return of Rollins, Inc. (NYSE:ROL) was -3.16%, and its shares gained 18.78% over the past 52 weeks. Rollins, Inc. (NYSE:ROL) has a market capitalization of $29.308 billion.

Conestoga Capital Advisors stated the following regarding Rollins, Inc. (NYSE:ROL) in its fourth quarter 2025 investor letter:

"Rollins, Inc. (NYSE:ROL) is a premier global consumer and commercial services company, providing essential pest control services through brands such as Orkin. The company’s stock appreciated following a solid 3Q25 earnings report that demonstrated its consistent pricing power and recurring revenue stability. The company reported organic growth of 7.2%-led by commercial organic growth of 8.4%. The company also showed strong incremental margins of 35%. Additionally, a double-digit increase in the quarterly dividend highlighted management’s confidence in future cash flows. ROL remains a core holding due to its defensive characteristics and ability to compound earnings through various economic cycles."

Rollins, Inc. (NYSE:ROL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 48 hedge fund portfolios held Rollins, Inc. (NYSE:ROL) at the end of the third quarter, up from 42 in the previous quarter. In 2025, Rollins, Inc. (NYSE:ROL) reported record revenue of $3.8 billion, marking an increase of 11% year-over-year. While we acknowledge the potential of Rollins, Inc. (NYSE:ROL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Rollins, Inc. (NYSE:ROL) and shared a list of best February dividend stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.