These 5 rallying water stocks are up for the quarter. Will the trend continue if droughts persist?
California's water problem isn't going to improve any time soon. Most expect the droughts will continue until El Nino returns this winter and dumps some much-needed rain on the parched Southwest.
Currently only California has done very much about addressing the persistence of water shortages.
Among other things, lawmakers have introduced tiered water pricing, charging more for less-than-necessary water use like lawn maintenance. Los Angeles Country has introduced a "cash for grass" program that would pay people to build more sustainable gardens and the like.
As of now the entire state is on emergency water rationing. And those concerns are starting to spread into Nevada, where advertising campaigns aimed at particularly thirsty residents in the south of the state are urging smarter water use.
Many analysts see water plays as one of the most secular growth plays out there. That's because climate change and population growth have already started to put greater pressure on water tables in a trend that few expect to slacken.
Water utilities, who are expanding their infrastructure to move water from plentiful regions to stressed ones, will benefit most from this trend. We decided to run a screen on water utilities stocks that traded up for the quarter ending in March.
Starting with a list of 20 water stocks, 5 passed the first screen. Do you think water utilities represent a reliable growth play? Use the list below to begin your analysis, and let us know what you think in the comments.
Click on the interactive chart to view data over time.
1. American Water Works Company, Inc. (AWK, Earnings, Analysts, Financials): Provides water and wastewater services to residential, commercial, industrial, public, and other customers in the United States and Canada. Market cap at $7.81B, most recent closing price at $43.87.
Perf. Quarter: 9.12%
2. American States Water Company (AWR, Earnings, Analysts, Financials): Provides water, electric, and contracted services in the United States. Market cap at $1.11B, most recent closing price at $28.81.
Perf Quarter: 1.93%
Perf Quarter: 10.17%
4. Middlesex Water Co. (MSEX, Earnings, Analysts, Financials): Operates regulated water utility and wastewater systems in New Jersey, Delaware, and Pennsylvania. Market cap at $321.45M, most recent closing price at $20.24.
Perf Quarter: 1.11%
5. Companhia de Saneamento Basico do Estado de Sao Paulo (SBS, Earnings, Analysts, Financials): Provides water and sewage services to residential, commercial, industrial, and governmental customers in the State of Sao Paulo. Market cap at $6.34B, most recent closing price at $9.28.
Perf Quarter: 8.41%
(List compiled by James Dennin. Monthly returns sourced from Zacks, quarterly performance sourced from Finviz.)
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- American Water Works Company, Inc.(AWK, Chart, Download SEC Filings)
- American States Water Company(AWR, Chart, Download SEC Filings)
- Cadiz Inc.(CDZI, Chart, Download SEC Filings)
- Middlesex Water Co.(MSEX, Chart, Download SEC Filings)
- Companhia de Saneamento Basico do Estado de Sao Paulo(SBS, Chart, Download SEC Filings)
© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.
Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.
Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC.