NEW YORK (TheStreet) -- United Parcel Service (UPS) shares closed trading up 0.39% to $100.35 on Tuesday after the parcel mailing service provider announced that acquired logistics firm Parcel Pro for an undisclosed amount.
Parcel Pro provides services and insurance coverage for the transport of jewelry, wristwatches and other luxury goods.
"The increased maximums allow companies to ship more items in one package, which is logistically easier and more cost effective," UPS said in a statement yesterday.
The acquisition is part of the company's increased interest in the business to business delivery sector, according to the Wall Street Journal.
Separately, the company also announced that it was discontinuing some holiday season shipping discounts.
The company reportedly told certain retailers that it is discontinuing free shipping on large items like furniture due to the logjam the items create at the company's sorting centers.
Smaller packages can fit on the company's conveyer belts, however, larger packages like furniture have to be carried by the company's employees.
TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED PARCEL SERVICE INC (UPS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, 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 revenue growth, notable return on equity, good cash flow from operations, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."