Citi’s Marc Van’t Sant Upgraded Rollins (ROL). Here’s the Problem Bulls Say Can Be Fixed Farooq Tue, November 10, 2026 at 5:22 PM EST 4 min read ROL +0.69% ^IXIC -0.74% ^GSPC -0.38% ^DJI -0.30% Trade Rollins on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of the 10 Stocks Analysts Just Upgraded and Rollins (NYSE:ROL) ranked 10th on this list.
Wall Street spent last Thursday reminding investors how quickly a favorite theme can turn. Worries that Democratic midterm wins could bring tighter rules for artificial intelligence and data centers sent technology stocks sharply lower. The damage spread well beyond the group that was under the microscope.
The Nasdaq Composite fell 5.52%, its biggest one-day drop in 19 months, and closed more than 10% below its October record, a slide that put it in a correction. The S&P 500 lost 4.36%, its worst drop since the April 2025 tariff shock, and the Dow Jones Industrial Average slid 3.44%. The drop more than erased the previous day's gain, the market's best in three months.
Trading was frantic. About 26.9 billion shares changed hands, against a 20-session average of 17.7 billion.
Semiconductor stocks absorbed the worst of it, and the selling was heavy in the other stocks tied to data center spending too. The Philadelphia SE Semiconductor Index dropped more than 12%, and S&P 500 companies lost about $3 trillion in market value in one session. Even so, the S&P 500 was still up 7.4% for the year, and the Nasdaq Composite was still up 4.6%.
"This feels like the capitulation phase for the data center capex beneficiary stocks, especially the semiconductors," Argent Capital Management portfolio manager Jed Ellerbroek told Reuters. Melissa Brown, global head of investment decision research at SimCorp, said investors were starting to price in the chance that newly elected lawmakers would slow the build-out. Our ranking of oversold AI stocks where Wall Street analysts are spotting 50% or more upside covers more of the group.
The selling landed on top of a tightening cycle. Cleveland Fed President Beth Hammack and Richmond Fed President Thomas Barkin both hinted at possible future rate hikes. Traders expected the Federal Reserve to raise rates again next month after a September increase.
Energy prices added to the strain. Brent crude rose 3.9% to $98.29 a barrel, while the 10-year Treasury yield slipped to 4.83% from 4.90%. Readers who follow analyst calls on value can find more ideas in our list of affordable stocks that Wall Street analysts like.
Overseas, the Bank of England raised its main rate for the first time in three years. Governor Andrew Bailey said, "The best thing that can happen is to resolve the conflict in the Middle East; there's no question about it."
Rollins made it to our list because it drew an analyst rating upgrade on Monday, November 9. Citi analyst Marc Van't Sant upgraded Rollins to Buy from Neutral on Monday, November 9, and raised his price target to $49 from $32. Bulls on the stock argue the recent slowdown is a lead-generation problem the company can fix rather than a sign of weaker demand.
Rollins provides pest control services to homes and businesses, mostly under recurring service plans, with Orkin as its flagship brand. Third-quarter organic growth was 4.4%, and the company lowered its 2026 organic growth forecast to a range of 4% to 6%. Management attributes the shortfall to AI-driven search, which sends fewer leads to large brand websites.
Management is responding by publishing prices and same-day service windows so AI tools surface them, and by buying ads on ChatGPT and Google. Declines in organic website traffic narrowed in September, though a similar improvement earlier this year did not last. Management says it has seen no meaningful increase in cancellations, and it expects organic growth to return to 7% to 8% over time.
Bears point to the lower profit margin as the cost of the shift. Our piece on whether repeat customers still justify a premium for Rollins weighs that debate.
While we acknowledge the risk and potential of ROL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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