Investigating ROL Stock Performance Relative to Consumer Discretionary Sector
Rollins, Inc. (ROL), a global leader in pest and termite control services, has outperformed H&R Block, Inc. (HRB) over the past 52 weeks. While HRB shares have declined 22.1% during this period and are down 5% year-to-date, ROL's stock has gained 19.2% year-to-date, despite a recent dip.
ROL reported its Q2 results on Jul. 23, with adjusted EPS of $0.30 surpassing Wall Street expectations of $0.29. The company's Q2 revenue was $999.5 million, surpassing forecasts of $979.4 million. These strong earnings are attributed to recurring service contracts, high customer retention rates, and steady demand for pest control as an essential service.
ROL's stock has been trading above the 200-day moving average since the end of January, but it has recently dipped below its 50-day moving average. However, it is currently trading 6.6% below its 52-week high of 59.10, a level it touched on Aug. 8. Shares of ROL rose 5% in the following trading session after Q2 results.
The Consumer Discretionary Select Sector SPDR Fund (XLY) has gained 13.2% over the same time frame, while ROL has trailed slightly, climbing 8.5% over the past 52 weeks. Institutional investors and analysts covering Rollins, Inc. have indicated a consensus target price of approximately $60.91 over the last 52 weeks. The mean price target of $60.91 for HRB reflects a premium of 10.3% from the current market prices.
ROL is anchored by its flagship brand Orkin, headquartered in Atlanta, Georgia. The company has a presence in more than 70 countries and provides comprehensive solutions to both residential and commercial customers. The company's focus on recurring service contracts and high customer retention rates has contributed to its success.
Despite trailing behind HRB in terms of performance over the past 52 weeks, the consensus rating among the 13 analysts covering the HRB stock is "Moderate Buy".
In contrast, Rollins, Inc. (ROL) continues to outperform, benefiting from its essential service offering and strong demand across both residential and commercial pest control services. With a market cap of $27.3 billion, ROL stands as a significant player in the industry.
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