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Valvoline Opens VIOC Center in Michigan, Expands Network

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Valvoline Inc. (VVV - Free Report) recently announced that it has completed the acquisition of a quick lube location based in Lansing, MI. Currently, the quick lube location is operating as a Valvoline Instant Oil Change (VIOC) service center.

With this move, the company now owns 48 of the 50 VIOC quick-lube locations operating in the state. The move has expanded the company’s existing network of more than 1,300 franchised and owned VIOC stores.

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 enable customers to stay inside the car and watch the services being performed.

Other Notable Acquisitions

Recently, the company’s franchisee Westco Lube completed the acquisition of a quick lube location based in the Wichita area. Also, the company’s franchisee, Metrolube Companies, too made a similar acquisition in the Fort Pierce area. This month, the company acquired a quick lube location based in Williamsburg, VA. Notably, these locations are now operating as VIOC service centers.

Existing Business Scenario

Valvoline has been working diligently to strengthen its quick-lube model. In this regard, it has taken several efforts ranging from expansion of stores to starting VOIC service stores and Express Care centers at the acquired locations. This model helps the company provide quick and reliable services to its customers through a convenient approach.

However, in the past three months, this Zacks Rank #3 (Hold) stock has lost 4.6% against the industry’s increase of 11.8%. Additionally, the company has a dismal earnings surprise history with no beats in the trailing four quarters.

Key Picks

Some better-ranked stocks in the same space are Ingevity Corporation (NGVT - Free Report) , W.R. Grace & Co. and Israel Chemicals Ltd. (ICL - Free Report) . While Ingevity sports a Zacks Rank #1 (Strong Buy), W.R. Grace & Co. and Israel Chemicals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity surpassed estimates in each of the trailing four quarters, with average beat of 22.84%.

W.R. Grace & Co exceeded estimates in each of the trailing four quarters, with average beat of 12.21%.

Israel Chemicals surpassed estimates in each of the trailing four quarters, with average beat of 12.25%.

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