Valvoline: Still Has Decent Upsides From Here

Redfox Capital Ideas700 FollowersFollow5ShareSavePlay(8min)CommentsSummaryValvoline (VVV) remains a buy as Q1 2026 delivered robust 5.8% SSSG, 11% revenue growth, and strong margin expansion. VVV’s pricing power and service mix drove revenue gains, signaling customers are accepting higher-value services and price increases. Breeze integration is progressing in line with expectations, reducing perceived risk and setting up for potential multiple re-rating. At 22x NTM PE, VVV offers a 16% upside if adj. EPS reaches ~$2.01, with consensus growth assumptions appearing reasonable. Michael H/DigitalVision via Getty Images Investment summary My previous investment thought on Valvoline (VVV) was a buy rating because I believed the market was over-discounting Breeze's risk. I stay buy-rated after looking at the Q1 2026 results. The coreThis article was written byRedfox Capital Ideas700 FollowersFollowI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.