A String Of Strong Results Lifted Rollins (ROL) Higher
Conestoga Capital Advisors, an asset management company, released its “Mid-Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The second quarter of 2024 may be regarded as a time of moderation. Economic indicators largely reflected slowing growth and easing inflation. The moderation theme also drives equity markets. Large-cap stocks, as measured by the S&P 500, rose 3.9% in the second quarter, however, small-cap stocks lagged again, with the Russell 2000 Index declining -3.3% and the Russell 2000 Growth Index declining -2.9%. The Mid Cap Strategy declined -4.22% net-of-fees in the quarter compared to a -3.21% return for the Russell Mid Cap Growth Index. Sector allocation effects were slightly positive, while stock selection effects detracted from relative returns. Higher-quality companies benefited from stylistic factors, which helped to boost relative returns. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conestoga Capital Advisors highlighted stocks like Rollins, Inc. (NYSE:ROL) in the second quarter 2024 investor letter. Rollins, Inc. (NYSE:ROL) offers pest and wildlife control services to residential and commercial customers. The one-month return of Rollins, Inc. (NYSE:ROL) was -4.88%, and its shares gained 20.87% of their value over the last 52 weeks. On August 16, 2024, Rollins, Inc. (NYSE:ROL) stock closed at $48.18 per share with a market capitalization of $23.334 billion.
Conestoga Capital Advisors stated the following regarding Rollins, Inc. (NYSE:ROL) in its Q2 2024 investor letter:
"Rollins, Inc. (NYSE:ROL): ROL’s 1Q24 results continued a string of strong results for this leading provider of residential and commercial pest control services. While organic residential pest services was slow in January due to weather, the company highlighted that organic growth accelerated significantly as the quarter progressed and as the company entered the critically important spring selling season. The company also completed 12 tuck-in acquisitions investing $47 million in the quarter."
A pest control service technician spraying insecticide in a residential property.
Rollins, Inc. (NYSE:ROL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Rollins, Inc. (NYSE:ROL) at the end of the second quarter which was 36 in the previous quarter. The second quarter financial performance Rollins, Inc. (NYSE:ROL) was highlighted by an 8.7% revenue growth to $892 million. While we acknowledge the potential of Rollins, Inc. (NYSE:ROL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Rollins, Inc. (NYSE:ROL) was listed among Conestoga Capital Advisors' top contributors in its Q4 2023 investor letter. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.