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Valvoline (VVV) Opens VIOC Center in Salem, Massachusetts

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Valvoline Inc. (VVV - Free Report) recently announced the opening of a new Valvoline Instant Oil Change (VIOC) service center. Notably, Henley Enterprises, Inc. — a franchisee of Valvoline opened the service center in Salem, Massachusetts. At present, Henley Enterprises controls the functioning of 45 VIOC quick-lube locations in the greater Boston area.

VIOC service centers provide a variety of services, including tire rotation; preventive maintenance services related to the radiator, air conditioning and transmission; and replacement of safety parts like light bulbs and wiper blades. In addition, battery and fuel system services can be availed at many locations. Interestingly, VIOC service stores allow customers to stay inside the car and watch the services being performed.

In July, the company completed the acquisition of Great Canadian Oil Change Franchising Ltd’s business assets. The buyout added 73 Great Canadian Oil Change franchises to the company’s quick-lube network of more than 1,200 company- and franchise-owned locations in North America. Earlier, Valvoline’s franchisee Big River Quality Auto Inc. also completed the buyout of a quick lube location based in Evansville, IN.

In the past six months, this Zacks Rank #4 (Sell) stock has lost 8.9% against the industry’s average growth of 7.3%. Also, the company has a dismal earnings surprise history with no beats in the trailing four quarters.

Notably, analysts have become increasingly bearish on Valvoline. In the past couple of months, the Zacks Consensus Estimate for fiscal 2018 earnings has trended down from $1.34 to $1.29 owing to six downward estimate revisions versus none upward.

Stocks to Consider

Some better-ranked stocks in the same space are KMG Chemicals, Inc. , Ashland Global Holdings Inc. (ASH - Free Report) and CSW Industrials, Inc. . While KMG Chemicals sports a Zacks Rank #1 (Strong Buy), Ashland Global Holdings and CSW Industrials carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

KMG Chemicals surpassed estimates in each of the trailing four quarters with an average beat of 33.21%.

Ashland Global Holdings exceeded estimates thrice in the trailing four quarters with an average beat of 11.70%.

CSW Industrials surpassed estimates in each of the trailing four quarters with an average beat of 6.93%.

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