As the severe drought in California enters its third summer, economic pressures on the state have never been higher. According to meteorologists, the drought may be the worst the region has experienced in 1,200 years, and cities and towns are being forced to cut water usage by 25 percent in accordance with state-wide emergency regulations.
However, while Californians remain high and dry, some investors are swimming in profits thanks to the dry spell. Here are a few stocks for traders to consider who see another long summer ahead for California.
First Solar, Inc. FSLR
First Solar is a leader in utility-scale solar power, and it certainly doesn't mind more sunny days in California. Shares of First Solar are up more than 233 percent in the past three years.
SolarCity Corp SCTY
Stocking with the theme of solar power, SolarCity is California’s largest installer of rooftop solar panel kits. Shares of the stock have surged more than 419 percent in the past three years.
American States Water Co AWR
One obvious way to play the dry conditions is to invest in a water company. American States sells water to about 250,000 customers in California, and the stock is up more than 108 percent in the past three years.
General Electric Company GE
California is struggling to replace lost hydropower, and GE is the world’s largest supplier of heavy-duty natural gas and wind turbines. As a massive global conglomerate, GE is far from a pure play on the California drought, but its products and services will continue to be in high demand there.
NextEra Energy Inc NEE
NextEra has three solar and 10 wind facilities in California. NextEra’s shares are up more than 44 percent in the past three years.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.