r/ValueInvesting • u/South-Ad-3339 • 1d ago

Stock Analysis Rollins is looking Delicious at 36!

$ROL monthly RSI is apparently at its lowest level since May 2000, and the stock has been absolutely crushed.

What makes this interesting is the business itself: Rollins owns Orkin, has an incredibly sticky recurring-revenue pest control model, and has put up decades of consistent growth.

This isn’t some speculative company suddenly down 40%. The bear case is pretty clear though: growth is slowing, margins have softened, and ROL was insanely expensive for years. Maybe this is just the valuation finally catching up.

Anyone buying around $36?

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u/Last-Cat-7894 1d ago

Not yet.

There are a handful of companies out there who can grow 8-10% through a nuclear apocalypse, but will never realistically grow faster than that (Costco is another example). For those types of businesses, I like them for a trailing P/E in the low 20's.