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Advance Auto (AAP) Shifts Center to North Carolina's Raleigh

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Per AP, Advance Auto Parts, Inc. (AAP - Free Report) is shifting its headquarters to Raleigh, NC, after staying at Roanoke, VA, for almost 90 years. The new site for head office has been chosen as numerous qualified and technically advanced candidates are available in Raleigh. However, the 600 employees working at Roanoke are to continue working, even after the office gets shifted.

Changing the center’s location is in sync with Advance Auto’s strategy to widen its online presence. Availability of technically-advanced talents in Raleigh makes it a better headquarter option for expanding the company’s virtual presence.

Moving of the headquarters to Raleigh adds approximately 435 jobs to the company. The requirement for these openings will be focused on data analytics, internet commerce and other computer technology roles. In lieu of $11-million package of state and local incentives, the company will maintain 700 jobs at the new head office.

Advance Auto Parts, Inc. Price and Consensus

 

After the acquisition of Raleigh-based General Parts International Inc. in 2014, Advance Auto separated corporate and support processes among Roanoke and Raleigh. In fact, since 2014, the combined corporate operations are managed in Raleigh, with more than $17 million in tax breaks. Currently, most of the company’s top executives are based in Raleigh.

Advance Auto Parts is focusing on expansion through partnerships, increasing online presence and opening stores. In October, it announced that it collaborated with Walmart to create an automotive specialty store on Walmart.com. The company is benefitting from improved online traffic, which is enabling it to offer its extensive portfolio of aftermarket auto parts, accessories and maintenance items to a larger customer base.

Price Performance

Over the past three months, Advance Auto’s stock has gained 10.6%, outperforming 4.3% increase recorded by the industry it belongs to.

 



Zacks Rank & Other Key Picks

Advance Auto currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Tesla, Inc. (TSLA - Free Report) and Toyota Motor Corporation (TM - Free Report) . Allison Transmission currently sports a Zacks Rank #1 (Strong Buy) while Tesla and Toyota carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have increased 13.7% over the past six months.

Tesla has an expected long-term growth rate of 35%. Shares of the company have rallied 19.3% over the past six months.

Toyota has an expected long-term growth rate of 6%. Over the past month, shares of the company have gained 4.6%.

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