Rollins Inc. (ROL) slipped to a 52‑week low of $34.34 on the day, marking a 37.81% decline over the past twelve months. The company, valued at roughly $16.5 billion, trades at a price‑to‑earnings multiple of 31.3 and offers a 2.07% dividend yield, having maintained dividend payments for 56 consecutive years.
For the second quarter of 2026, Rollins reported earnings of $0.32 per share on revenue of $1.08 billion, both modestly below Wall Street forecasts. The shortfall stemmed mainly from weaker‑than‑expected performance in its residential pest‑control segment, prompting the firm to lower its full‑year organic growth outlook. By contrast, commercial pest‑control and termite services continued to post solid results, partially offsetting the residential weakness.
Analyst reactions were mixed. Piper Sandler reduced its price target to $46 while keeping an Overweight rating. Wells Fargo downgraded the stock to Underweight from Equal Weight, citing soft residential growth and adverse weather trends over the last three quarters. JPMorgan also cut its stance to Neutral from Overweight, pointing to near‑term challenges, industry volatility and the difficulty of balancing investment with margin protection.
Management indicated that operational trends improved in late June and early July but emphasized a cautious near‑term outlook. InvestingPro’s analysis labeled the shares as undervalued at current levels and added Rollins to its "Most Undervalued stocks" list.
