Rollins (ROL) – A Durable Growth Play in Pest Control
Rollins isn’t a flashy tech name, but that might be its biggest strength. The company has built a business around termite, pest, and wildlife control services that are both essential and recurring—about 80% of its revenue comes from long-term service contracts. That consistency has translated into reliable growth, and with shares trading around $58, the stock looks interesting as it continues to expand its reach.
What stands out here is the runway ahead. Rollins has only penetrated about 15% of the $20+ billion U.S. pest control market, which means there’s still plenty of room to grow. Management has also been investing in modernization and expanding internationally, while keeping technician retention rates high—a key competitive advantage in a people-driven business.
On top of steady organic growth, acquisitions could add another 2%–3% to annual results. Even accounting for potential headwinds like climate-driven shifts in pest populations, the industry has proven resilient through a variety of economic environments.
J.P. Morgan just initiated coverage with an Overweight rating and a $70 price target, suggesting nearly 20% upside from current levels. With a strong brand portfolio that includes Orkin and Critter Control, and a business model built on repeat revenue, Rollins looks like a long-term compounder worth paying attention to.
