Why Rollins (ROL) is a Top Growth Stock for the Long-Term

Rollins (ROL), a provider of pest and termite control services, has been identified by Zacks Investment Research as a top growth stock, earning a Zacks #2 (Buy) Rank, a VGM Score of B, and a Growth Style Score of B. This positive outlook is underpinned by a forecasted 12.1% year-over-year earnings growth for the current fiscal year and recent analyst upgrades, which have pushed the FY2025 consensus earnings estimate to $1.11 per share. The combination of strong proprietary rankings and positive growth indicators suggests ROL warrants consideration for growth-focused portfolios.

Analysis

Rollins (ROL) presents a compelling growth-oriented profile according to Zacks' proprietary metrics, securing a #2 (Buy) rank, a 'B' grade for its overall VGM (Value, Growth, Momentum) Score, and a 'B' for its Growth Style Score. This outlook is quantitatively supported by a forecasted 12.1% year-over-year earnings growth for the current fiscal year. Analyst sentiment has shown positive momentum, with two upward revisions to fiscal 2025 earnings estimates in the last 60 days, which has pushed the Zacks Consensus Estimate for that period up by $0.02 to $1.11 per share. A key detail to note is the company's average earnings surprise of +0%, which indicates a strong history of meeting consensus expectations precisely, but not necessarily exceeding them, suggesting predictable and stable performance.

Key Decisions for Investors

• Given the #2 (Buy) rank, positive earnings revisions, and a projected 12.1% earnings growth, investors with a growth-focused strategy should consider ROL as a candidate for their portfolios.
• The historical +0% average earnings surprise implies predictable performance; therefore, valuation models should likely price in stable execution rather than significant upside from earnings beats.
• Since the bullish thesis is heavily dependent on forward estimates, it is crucial to monitor for any changes to the Zacks Rank or further analyst revisions to the FY2025 consensus forecast.