Why Valvoline Inc. (VVV) Is Skyrocketing So Far In 2025?

We recently published a list of Why These 15 Automotive Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Valvoline Inc. (NYSE:VVV) stands against other automotive stocks that are skyrocketing so far in 2025.

The automotive industry is starting to shift gears this year as supply chains continue to improve and the worldwide rate-cut cycle stimulates more demand. In addition, Trump’s election is also changing things with loosened regulations helping legacy automotive companies, and tariffs helping domestic companies, though it hurts companies abroad.

Regardless, the electrification megatrend has continued, and electric vehicle shipments are projected to surge by 17% this year. Also, the European automotive sector is showing signs of recovery with a projected 2.1% growth.

The broader sector could get a lot hotter this year if macroeconomic metrics cooperate and rates come down more. Let’s take a look at the stocks that have already started to climb.

Methodology

For this article, I screened the top-performing automotive stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Why Valvoline Inc (VVV) Is Skyrocketing So Far In 2025?

A close-up of a metal oil pump in an oil refinery, a key part of the company’s production.

Valvoline Inc. (NYSE:VVV)

Number of Hedge Fund Holders In Q3 2024: 35

Valvoline Inc. (NYSE:VVV) provides automotive preventive maintenance services through its service centers.

The stock is up significantly so far in 2025 as it reported sales growth of 11% year-over-year and system-wide store sales of 14% to $820 million in the latest quarter. It also had 35 new store openings, with net income growing 177% year-over-year to $94 million. The results beat analyst estimates.

Furthermore, Valvoline (NYSE:VVV) completed a refranchising deal in Texas during Q1 to convert company-owned stores to franchises. It’s an asset-light approach that will lower its CapEx and increase high-margin royalty revenue. The company’s CEO thinks it will help it get 160 to 185 new stores in FY2025 with improved ROIC.

Valvoline (NYSE:VVV) increased its full-year EPS forecast to $1.57-$1.67 (vs. $1.62 consensus) and maintained a $1.7 billion revenue guidance.

The consensus price target of $45.11 implies 12.5% upside.

VVV stock is up 10.83% year-to-date.

Overall, VVV ranks 13th on our list of automotive stocks that are skyrocketing so far in 2025. While we acknowledge the potential of VVV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.If you are looking for an AI stock that is more promising than VVV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.