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Valvoline Opens 17 Quick-Lube Centers in Southern California

Zacks Equity Research

Valvoline Inc. VVV recently announced that its franchisee Henley Pacific LA, LLC has completed the acquisition of 17 quick lube locations in southern California. Currently, these locations are operating as Valvoline Instant Oil Change (VIOC) service centers.

With these acquisitions, more than 100 of the VIOC quick-lube locations are being operated by Henley Pacific in the southern California.

Separately, it also announced the opening of a newcompany-owned VIOC service center in the Houston area. With this, the company currently owns four of the five VIOC quick-lube locations operating in Houston. The move expanded Valvoline’s existing network of more than 1,170 franchised and owned VIOC stores.

Notably, VIOC stores offer a wide variety of services, including tire rotation, preventive maintenance services related to the radiator, air conditioning and transmission as well as replacement of safety parts, like light bulbs and wiper blades. Most of the locations provide fuel system and battery services as well. VIOC service stores allow customers to stay inside the car and watch the services being performed.

 

In the past year, this Zacks Rank #4 (Sell) stock has lost 21.3% compared with the industry’s average decline of 12.2%. 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 2019 earnings has trended down from $1.48 to $1.39 owing to seven downward estimate revisions versus none upward.

Key Picks

Some better-ranked stocks in the same industry are Daqo New Energy Corp. DQ, Celanese Corporation CE and W.R. Grace & Co. GRA. While Daqo New Energy sports a Zacks Rank #1 (Strong Buy), Celanese and W.R. Grace carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Daqo New Energy surpassed estimates thrice in the trailing four quarters, the average beat being 15.27%.

Celanese exceeded estimates in each of the trailing four quarters, the average beat being 13.29%.

W.R. Grace surpassed estimates in each of the trailing four quarters, the average beat being 10.06%.

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Celanese Corporation (CE) : Free Stock Analysis Report
 
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