Motor oil and lubricant maker Valvoline (VVV) has seen its stock struggle in recent years and I believe it reflects overvaluation and a lack of growth drivers.

However, I also believe this is about to change. The stock is reasonably valued at 16X fiscal September 2019 estimates of $1.60 per share, and the company is starting to see growth from its Quick Lube oil change centers, which now contribute around 50% of operating income.

I believe VVV is a strong pick for the current environment where there remains economic uncertainty, and interest rates likely will stay low for an extended period to allow for multiple expansions for companies whose products have stable demand characteristics. Buy VVV below $21. My target is $25. The shares’ 2.1% dividend yield will add to total returns. The stock is somewhat illiquid, so please build your positions slowly.