Market Capitalization $11.0 Billion. Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years

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1 BUY HOLD SELL A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F Annual Dividend Rate BUSINESS DESCRIPTION Advance Auto Parts, Inc., through its subsidiaries, provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. STOCK PERFORMANCE (%) 3 Mo. 1 Yr. 3 Yr (Ann) Price Change GROWTH (%) Last Qtr 12 Mo. 3 Yr CAGR Revenues Net Income EPS BUY Sector: Consumer Goods & Svcs Sub-Industry: Automotive Retail Source: S&P BUY RATING SINCE 09/22/2009 TARGET PRICE $ Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years Rating History BUY TARGET PRICE $ RETURN ON EQUITY (%) Ind Avg S&P 500 Q Q Q P/E COMPARISON Volume in Millions COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History RECOMMENDATION We rate () a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any nesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself Ind Avg S&P 500 HIGHLIGHTS The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a debt-to-equity ratio, the quick ratio of 0.20 is very and demonstrates a lack of ability to pay short-term obligations. EPS ANALYSIS¹ ($) 47.43% is the gross profit margin for which we consider to be. Regardless of 's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.52% trails the industry average. Q Q Q Q Q Q Q NA = not available NM = not meaningful Q Q Q Compustat fiscal year convention is used for all fundamental data items. 's earnings per share declined by 17.2% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, reported lower earnings of $6.40 versus $6.71 in the prior year. This year, the market expects an improvement in earnings ($7.36 versus $6.40)., with its decline in revenue, underperformed when compared the industry average of 11.6%. Since the same quarter one year prior, revenues slightly dropped by 4.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share. Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of ness within the company. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, has underperformed in comparison with the industry average, but has exceeded that of the S&P 500. PAGE 1

2 PEER GROUP ANALYSIS REVENUE GROWTH AND EBITDA MARGIN* Revenue Growth (TTM) -25% 20% LAD PAG AN ABG GPI KMX UNFAVORABLE 2% CST MUSA EBITDA Margin (TTM) FAVORABLE ORLY MNRO 22% Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $1.2 Billion and $26.9 Billion. Companies with NA or NM values do not appear. *EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. REVENUE GROWTH AND EARNINGS YIELD Revenue Growth (TTM) -25% 20% ORLY MNRO UNFAVORABLE 3% CST KMX Earnings Yield (TTM) LAD GPI PAG AN MUSA FAVORABLE ABG 12% Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -22.1% and 19.2%. Companies with NA or NM values do not appear. INDUSTRY ANALYSIS The specialty retail industry includes very well-known home improvement, apparel, automotive, and other narrow-focus stores such as Home Depot (HD), TJX Companies (TJX), Lowe s Companies (LOW), Gap (GPS), Bed Bath & Beyond (BBBY), Ross Stores (ROST), O Reilly Automotive (ORLY), CarMax (KMX), and Build-A-Bear Workshop (BBW). The variety of product focuses targeted by specialty retail companies is very diverse. These include but are not limited to home improvement goods, pharmaceutical & beauty, shoes, electronics, and office supplies. Also included are stores narrowly focused on music, books, wine, games, rentals, vitamins, lumber, sporting goods, toys, jewelry, and fashion apparel for men, women, and teddy bears. Some of the larger specialty retail companies also profit from the extension of credit to their customers with branded credit cards. Companies in this industry are judged based on the metric of same-store sales, a measurement that shows if stores open for more than one year are increasing top line revenue or shrinking. PEER GROUP: Specialty Retail Recent Market Price/ Net Sales Net Income Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M) , , AN AUTONATION INC , , PAG PENSKE AUTOMOTIVE GROUP INC , , CST CST BRANDS INC , , MUSA MURPHY USA INC , , ORLY O'REILLY AUTOMOTIVE INC , , LAD LITHIA MOTORS INC , , MNRO MONRO MUFFLER BRAKE INC , GPI GROUP 1 AUTOMOTIVE INC , , ABG ASBURY AUTOMOTIVE GROUP INC , , KMX CARMAX INC , , The peer group comparison is based on Major Automotive Retail companies of comparable size. PAGE 2

3 Annual Dividend Rate COMPANY DESCRIPTION Advance Auto Parts, Inc., through its subsidiaries, provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. It offers automotive parts, including alternators, batteries, belts and hoses, brakes and brake pads, chassis parts, climate control parts, clutches, driveshafts, engines and engine parts, ignition parts, lighting products, radiators, starters, spark plugs and wires, steering and alignment parts, transmissions, water pumps, and windshield wiper blades; and accessories, such as air fresheners, automotive paints, anti-theft devices, emergency road kits, floor mats, ice scrapers, mirrors, seat and steering wheel covers, and vent shades. The company also provides chemicals comprising antifreeze, brake and power steering fluid, car wash and wax, freon, fuel additive, and windshield washer fluid products; oils, transmission fluids, and other automotive petroleum products; and battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics, and oil and battery recycling services, as well as loaner tool programs. In addition, it sells products online through AdvanceAutoParts.com and Worldpac.com. The company serves do-it-for-me, or Commercial, and do-it-yourself customers, as well as independently-owned operators. As of July 16, 2016, it operated a total of 5,066 stores and 126 Worldpac branches; and served approximately 1,300 independently-owned Carquest stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. Advance Auto Parts, Inc. was founded in 1929 and is headquartered in Roanoke, Virginia Airport Road Roanoke, VA USA Phone: STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and nesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE Growth 3.5 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, has a growth score better than 60% of the stocks we rate. Total Return 2.5 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company has beaten 40% of the companies we cover. Efficiency 4.5 out of 5 stars Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 80% of the companies we review. Price volatility 4.0 out of 5 stars Measures the volatility of the company's stock price historically. The stock is less volatile than 70% of the stocks we monitor. Solvency 5.0 out of 5 stars Measures the solvency of the company based on several ratios. The company is more solvent than 90% of the companies we analyze. Income 2.5 out of 5 stars Measures dividend yield and payouts to shareholders. The company's dividend is higher than 40% of the companies we track. THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. PAGE 3

4 Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial 1.74 Q3 FY E 2016(E) 8.18 E 2017(E) INCOME STATEMENT Net Sales ($mil) 2, , EBITDA ($mil) EBIT ($mil) Net Income ($mil) FINANCIAL ANALYSIS 's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. has very liquidity. Currently, the Quick Ratio is 0.20 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year. During the same period, stockholders' equity ("net worth") has increased by 20.08% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit BALANCE SHEET Cash & Equiv. ($mil) Total Assets ($mil) 8, , Total Debt ($mil) 1, , Equity ($mil) 2, , PROFITABILITY Gross Profit Margin 47.43% 48.52% EBITDA Margin 13.01% 14.27% Operating Margin 10.36% 11.63% Sales Turnover Return on Assets 5.43% 6.17% Return on Equity 16.68% 22.04% DEBT Current Ratio Debt/Capital Interest Expense Interest Coverage SHARE DATA Shares outstanding (mil) Div / share EPS Book value / share Institutional Own % NA NA Avg Daily Volume 1,068,180 1,014,522 2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates. PAGE 4

5 RATINGS HISTORY Our rating for has not changed since 3/12/2009. As of 9/22/2016, the stock was trading at a price of which is 25.9% below its 52-week high of $ and 13.3% above its 52-week low of $ VALUATION BUY. The current P/E ratio indicates a premium compared to an average of for the Specialty Retail industry and a value on par with the S&P 500 average of Conducting a second comparison, its price-to-book ratio of 3.99 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. 2 Year Chart BUY: $ $200 $175 $150 MOST RECENT RATINGS CHANGES Date Price Action From To 9/22/14 $ No Change Buy Buy Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS (as of 9/22/2016) 41.49% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months % Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss % Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. Price/Earnings Peers Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. is trading at a valuation on par with its peers. Price/Projected Earnings Peers Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. is trading at a valuation on par with its peers. Price/Book 3.99 Peers Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. is trading at a significant discount to its peers. Price/Sales 1.15 Peers 1.48 Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. is trading at a discount to its industry on this measurement. Price/CashFlow Peers Premium. The P/CF ratio, a stock s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. is trading at a significant premium to its peers. Price to Earnings/Growth 1.62 Peers 1.91 Discount. The PEG ratio is the stock s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. trades at a discount to its peers. Earnings Growth lower higher Peers 0.78 Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, is expected to significantly trail its peers on the basis of its earnings growth rate. Sales Growth lower higher Peers 7.28 Lower. A sales growth rate that trails the industry implies that a company is losing market share. significantly trails its peers on the basis of sales growth TheStreet Ratings 14 Wall Street, 15th Floor New York, NY Research Contact: Sales Contact: DISCLAIMER: The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at PAGE 5