One Stock the Blizzard Might be Helping

As the Northeastern U.S. continues to try to dig itself out from the recent blizzard that has delayed thousands of travelers and buried cities under inches of snow, one stock appears to be benefiting. Shares of Deckers Outdoor

rallied over nine percent on Thursday, all the more notable given that it occurred on a day where the Dow dropped triple digits. Iowa, Nebraska, New York, South Dakota and northern New England are all experiencing snow storms, while patches of snow dot much of the West. Deckers, which owns the UGG boot brand, may be poised to benefit from a spike in demand for its products as the precipitation piles up. There were reports that Sterne Agee had boosted its sales forecast for UGG boots. When contacted for comment, however, Sterne said that it had not released a note on Deckers Outdoor Thursday. Until today, the stock has been on a steady decline. After reaching over $44 on December 7, the price dropped every day through Christmas Eve. It rose a modest $0.04 on Wednesday before the sudden spike Thursday. The company's last surge came in late November, apparently on word of an imminent release of the new

for UGG Australia. The campaign featured NFL star and money-magnet Tom Brady. After hovering around $30 for over a week and closing at $30.94 on November 16, the share price jumped to $33.59 on November 19. It continued upward until December 7. Analyst sentiment on Deckers stock is evenly split between hold and buy. According to Yahoo Finance,

give the stock a “Hold” rating and eight either offer a “Buy” or “Strong Buy.”. Of note is that the number of “Strong Buy” ratings has climbed from three to five this month, suggesting analysts believe that the stock is moving in a favorable direction. Meanwhile, only one analyst suggests that the stock will under perform. With more severe weather on the way in scattered areas across the U.S., the stock may continue to climb. Much of the Northeast is expected to receive heavy snowfall through Friday morning, some with over a foot of snow. Several Western states are expected to receive snowfall in the coming hours and days, as well. Large portions of Colorado, Idaho, Nevada, Utah and Wyoming are anticipating snow as well as scattered areas of California, New Mexico, Oregon and Washington. Thus far, 2012 has not been a great year for Deckers. Year-to-date, shares are down roughly 50 percent. There has been some speculation that UGG boots are simply falling out of fashion, but an exceptionally mild winter in 2012 may have sapped consumers' demands for the company's boots.