Emily Flippen

Y'all have set the bar high, but let's see if I can live up to the expectations.

Stick with us.

Welcome back to Motley Fool Money.

As we wrap up today's show on stocks that could perform in a worse than expected economic environment, I have one last stock pitch to run past you both.

The stock that I want to talk about is actually Rollins, the ticker is R-O-L or Rollins.

It depends on how you prefer to pronounce it, but let me explain why I'm focused on this company.

I

when I think about this type of worse than expected economic environment, I want low balance sheet exposure in terms of debt in case interest rates are high, as well as clear pricing power or the ability to say like pass through inflation to their end consumer.

And there's a lot of industries that have that classically bond proxy stuff like utilities or commodities, even low growth anti-cyclical ideas.

But I kind of like the idea of entering a contrarian idea

that still has market beating potential even in this environment.

And that's why I like Rollins.

It's a higher growth pest control business.

It's been a quality compounder, a stock advisor recommendation going back a number of years.

And I like it because demand doesn't go away in lower growth economics.

environments and it has a really nice recurring revenue service model with proven pricing power, they can typically pass through inflation to their end consumer.

I think it has top-line growth that beats the market as long as they make some decently priced acquisitions.

That's something, again, that they're pretty able to do in weaker economic environments because the prices of those acquisitions typically come down.

This year, they're targeting around 7% to 8% organic growth with more white space on top of that if they make those acquisitions.

So, the debt is not nominal, but it is serviceable for this company.