What Are Analysts Saying About Essex Property Trust Inc’s (ESS) Growth?
Essex Property Trust Inc (NYSE:ESS) is expected to deliver an underwhelming negative -37.95% in earnings growth per share over the next three years. At a current EPS of $7.79, this adverse movement means shareholders can expect an impending EPS of $4.833. To assess the reasonability of ESS’s earnings per share contraction, we should look at its most recent growth rate delivered. Check out our latest analysis for Essex Property Trust
What can we expect from ESS in the future?
The next couple of years are a potential rough ride for Essex Property Trust. Analysts covering the company are expecting the EPS to drop down to $4.833, a significant decline from previous levels of around $7.79. In the same period we should see the revenue grow from $1,373M to $1,468M and profits (net income) are predicted to dip from $511M to $317M in the next couple of years. However, at this level of revenue and profit, margins are predicted to be extremely healthy.
Is this similar growth to the past?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is relatively justified or whether the negative sentiment is too pessimistic. ESS is expected to face a massive swing from a previous double-digit growth of 129.41%, over the last five years, to a forecast double-digit decline by analysts. This is highly bearish and may be a sign of an investment period for ESS, incurring higher expense growth than revenue.
Next Steps:
For ESS, I’ve put together three relevant aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is ESS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ESS is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ESS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
