5 Best Oil Refinery Stocks To Buy

3, Valvoline Inc. (NYSE:VVV)

Number of Hedge Fund Holders: 40

Valvoline Inc. (NYSE:VVV), priorly known as the Continuous Oil Refining Company, sells automotive oil, additives, and lubricants under the Valvoline brand. It is one of the best oil refining stocks to monitor. Valvoline Inc. (NYSE:VVV) paid a $0.125 per share quarterly dividend to shareholders on December 15. 

RBC Capital analyst Steven Shemesh on December 6 initiated coverage of Valvoline Inc. (NYSE:VVV) with an Outperform rating and a $39 price target. Following the sale of its global products division, Valvoline Inc. (NYSE:VVV) will be a “faster growing, higher margin business, with strong free cash flow generation”, the analyst told investors in a research note. The analyst believes a 14-times target multiple appropriately balances its “industry leading growth against separation risk/terminal growth concerns.”

According to Insider Monkey’s data, 40 hedge funds were long Valvoline Inc. (NYSE:VVV) at the end of Q3 2022, compared to 39 funds in the prior quarter. Andreas Halvorsen’s Viking Global is the leading position holder in the company, with 5.8 million shares worth $148 million. 

Wasatch Core Growth Fund released its Q2 2021 investor letter and mentioned Valvoline Inc. (NYSE:VVV): 

“Another significant contributor was Valvoline, Inc. (VVV), a company that manufactures lubricants and car parts and operates oil-change service centers. In addition to benefiting from the economic reopening, the company has discovered the advantages of making a mobile app available. Valvoline customers can use the app to find the closest service center and view live estimated wait times. Certainly, the adoption of technology to improve productivity and convenience isn’t a new theme. But we see mobile digitalization as a highly disruptive innovation that creates additional relationships among companies, distributors and customers. As a result, mobile digitalization is a competitive consideration in more and more of the companies that we evaluate for investment. In the first quarter, Valvoline’s stock declined partially because investors worried about the increasing popularity of electric vehicles (EVs)— which are much less dependent on petroleum products. But the stock rebounded in the second quarter, we think partly based on the realization that EVs still represent a tiny percentage of new cars sold and an even smaller percentage of cars in service. Moreover, Valvoline reported strong earnings and raised projections for the future.”