ROL Stock Surges 6.5% With A 9-day Winning Spree On Wells Fargo Target Hike
Rollins (ROL) – a pest and wildlife control service for residential and commercial customers – hit 9-day winning streak, with cumulative gains over this period amounting to a 6.5%. The company market cap has surged by about $1.9 Bil over the last 9 days, and currently stands at $31 Bil.
The stock has YTD (year-to-date) return of 5.5% compared to 0.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Wells Fargo Price Target Increase
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- Price target boosted to $68.00 from $65.00
- Overweight rating maintained
- Impact: Strengthened Investor Confidence, Increased Institutional Buying
[2] Positive Industry Outlook & Analyst Sentiment
- Multiple analyst upgrades and target hikes in prior weeks
- Reports of optimistic outlook for pest control in 2026
- Impact: Broadened investor interest in the sector, Sustained upward price momentum
Opportunity or Trap?
Below is our take on valuation.
There is not much to fear in ROL stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive (For details, see Buy or Sell ROL).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for ROL stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | ROL | S&P 500 |
|---|---|---|
| 1D | 0.3% | 1.2% |
| 9D (Current Streak) | 6.5% | -0.7% |
| 1M (21D) | 5.2% | 1.5% |
| 3M (63D) | 13.2% | 2.1% |
| YTD 2026 | 5.5% | 0.4% |
| 2025 | 31.1% | 16.4% |
| 2024 | 7.6% | 23.3% |
| 2023 | 21.2% | 24.2% |
Gains and Losses Streaks: S&P 500 Constituents
There are currently 28 S&P constituents with 3 days or more of consecutive gains and 34 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 11 | 12 |
| 4D | 4 | 13 |
| 5D | 4 | 2 |
| 6D | 2 | 2 |
| 7D or more | 7 | 5 |
| Total >=3 D | 28 | 34 |
Key Financials for Rollins (ROL)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $3.1 Bil | $3.4 Bil |
| Operating Income | $588.4 Mil | $657.2 Mil |
| Net Income | $435.0 Mil | $466.4 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $999.5 Mil | $1.0 Bil |
| Operating Income | $198.3 Mil | $225.0 Mil |
| Net Income | $141.5 Mil | $163.5 Mil |
While ROL stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.