7 Stocks That Could Surge From LA Wildfires Recovery Efforts

2. Essex Property Trust, Inc. (NYSE:ESS)

BMO Capital Markets upgraded Essex Property trust shares from market perform to outperform as analyst John Kim predicted that the company is ready to experience growth due to the ongoing fire in LA. As a result of the 0.7% loss in Los Angeles’s residential supply, the displaced residents will drive up demand for multifamily housing.

Essex’s balance sheet remains strong, despite increasing costs. Analysts predict 4-5% growth in operational income and estimate its fair value to be $320-$325. This is in addition to a strong history of dividend growth that supports the bull thesis. Regardless of fluctuations in stock prices, the stock remains a valuable choice for investors.

Due to its guarded geographical positioning, Essex has gained value by 13% in the past year. As California has few numbers of new apartments being built and an increase in demand for residential supply due to the LA wildfires, the company is expected to outperform in 2025. Keeping in mind that the company generates 80% business in California, it’s a worthy option to consider.