Stock of the Day

January 7, 2020

Rollins (ROL)

$57.80
-$0.25 (-0.4%)
Market Cap: $28.13B

About Rollins

Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife. It also provides workplace pest control solutions for customers across various end markets, such as healthcare, foodservice, and logistics. In addition, the company offers termite protection services and ancillary services. It serves clients directly, as well as through franchisee operations. The company was formerly known as Rollins Broadcasting, Inc and changed its name to Rollins, Inc. in 1965. Rollins, Inc. was founded in 1901 and is headquartered in Atlanta, Georgia.

Rollins Bull Case

Here are some ways that investors could benefit from investing in Rollins, Inc.:

  • Recent upgrades from multiple analysts, including a "buy" rating from Jefferies Financial Group, indicate strong market confidence in Rollins, Inc.'s future performance.
  • The current stock price is around $57, reflecting a potential upside based on recent price targets set by analysts, which suggest further growth opportunities.
  • Rollins, Inc. has shown consistent stock performance, with a market capitalization of approximately $27.75 billion, indicating a stable and significant presence in the market.
  • Analysts have noted a consensus rating of "Moderate Buy," suggesting that the majority of market experts believe in the company's growth potential.
  • The company has a relatively low debt-to-equity ratio, which indicates a strong financial position and less risk associated with debt financing.

Rollins Bear Case

Investors should be bearish about investing in Rollins, Inc. for these reasons:

  • The stock has a high price-to-earnings (PE) ratio, which may suggest that it is overvalued compared to its earnings, potentially leading to a price correction.
  • Insider selling activity has been noted, with significant shares sold recently, which could indicate a lack of confidence from those closest to the company.
  • Despite recent upgrades, there are still several analysts who maintain a "hold" rating, suggesting that not all market experts are convinced of the stock's upward trajectory.
  • The company's current ratio is below 1, indicating potential liquidity issues, which could affect its ability to meet short-term obligations.
  • Market volatility could impact Rollins, Inc.'s stock performance, as external economic factors may lead to fluctuations in investor sentiment.
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