Is Essex Property Stock Underperforming the S&P 500?

Valued at a market cap of $16.1 billion, San Mateo, California-based Essex Property Trust, Inc. (ESS) is a real estate investment trust engaged in the acquisition, development, redevelopment and management of multifamily residential properties in supply-constrained markets. 

Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” ESS fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the residential REIT industry.

The stock touched its 52-week high of $310.10 on Mar. 27, 2025, and is currently trading 19% below that peak. ESS stock has declined 4.3% over the past three months, underperforming the S&P 500 Index’s ($SPX) marginal decline during the same time frame.

Moreover, ESS has underperformed the broader market over the longer term. The stock has declined 16.4% over the past 52 weeks, while SPX delivered 19.6% returns over the same time frame. ESS has been trading below its 200-day moving average since last year and below its 50-day moving average since earlier this month.

On Feb. 4, ESS shares rose 2% following the release of its Q4 2025 earnings. The company’s same property NOI amounted to $291 million. Moreover, its adjusted funds from operations for the quarter came in at $265.1 million or $3.98 per share, falling short of Wall Street’s estimates.

When stacked against its peer, Equity Residential (EQR), ESS has underperformed. Over the past year, EQR stock has declined 12.9%, outperforming ESS stock.

Wall Street’s sentiment on ESS remains skeptical. Among the 26 analysts covering the stock, the consensus rating is a “Hold.” Its mean price target of $277.95 suggests a 10.7% upside potential from current price levels.