California Drought Stocks To Look At

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.