Hertz Global Holdings, Inc. 's ( HTZ ) wholly owned subsidiary, Hertz Equipment Rental Corporation ("HERC") is moving ahead with its expansion plans. The company declared its launch in Panama City, located in Panama.
With the launch of HERC Panama, the company will provide its equipment rental services for industrial, construction and government sectors to Panama City. Also, this launch forms part of the on-going industrial developments in the country, like the construction of road and highway, metro line development and Canal expansion.
The Government of Panama anticipates investing $15-20 billion in these development projects in the next 3-5 years. Other major projects like airport expansion, Cold Chain distribution network (farming), water supply, housing development, mining, distribution, and hospital and energy services also form part of the country's development plans.
Coming back to HERC Panama, which is operated by Asesoria Especializada RAL S.A, offers an array of industrial and commercial fleet for both sale and rent along with power, material handling, earthmoving, compressed air, electrical, aerial and compaction machinery. The equipment can be availed for rental periods ranging from daily to long term. Additionally, it provides fleet management and industrial plant assistance, thus increasing consumer satisfaction.
This launch will not only benefit the inhabitants of Panama with its superior-quality equipment rental services, but will also complement HERC's strategy of strengthening its global foothold, by marking its presence in one of the fastest-growing regions in Latin America. Also, it complements HERC's plans of achieving growth by maximizing consumer benefits and undertaking innovations.
The board at Hertz announced its decision to separate the company into two independent, publicly traded companies in Mar 2014. The first company will retain its car rental businesses comprising Hertz, Dollar, Thrifty and Firefly as well as its fleet-leasing services division called Donlen. The second company, named HERC, will comprise Hertz's equipment rental business.
Hertz currently carries a Zacks Rank #5 (Strong Sell) due to accounting mishaps that led it to postpone its first-quarter fiscal 2014 earnings announcement and related 10-Q filing. The earnings release, scheduled for Jun 9, was delayed due to the identification of certain errors in its financial results for 2011, and the need to restate the same as well as make relevant corrections in its 2012 and 2013 statements.
However, other better-ranked stocks in the industry include PFSweb Inc. ( PFSW ), with a Zacks Rank #1 (Strong Buy), ExamWorks Group, Inc. ( EXAM ) and Odyssey Marine Exploration Inc. ( OMEX ), each with a Zacks Rank #2 (Buy).