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Best Construction Stocks to Buy Now (2022)
Top construction stocks in 2022 ranked by overall Zen Score. See the best construction stocks to buy now, according to analyst forecasts for the residential construction industry.

Industry: Residential Construction
Ticker
Company
Exchange
Industry
Zen Score
Market Cap
Price
1d %
EBITDA
P/E
D/E
CVCO
CAVCO INDUSTRIES INC
NASDAQ
Residential Construction
$2.17B$243.87-0.07%$316.31M8.26x0.36
DFH
DREAM FINDERS HOMES INC
NASDAQ
Residential Construction
$879.36M$9.48-0.63%$326.74M4.02x2.24
TOL
TOLL BROTHERS INC
NYSE
Residential Construction
$5.61B$49.46-0.08%$1.44B5.79x1.12
LEN
LENNAR CORP
NYSE
Residential Construction
$26.04B$89.430.48%$5.90B5.90x0.53
LEGH
LEGACY HOUSING CORP
NASDAQ
Residential Construction
$454.20M$18.612.87%$80.39M7.36x0.15
PHM
PULTEGROUP INC
NYSE
Residential Construction
$10.12B$44.41-0.43%$3.20B4.50x0.74
NVR
NVR INC
NYSE
Residential Construction
$15.00B$4,694.28-0.65%$2.17B9.78x0.75
KBH
KB HOME
NYSE
Residential Construction
$2.70B$31.590.70%$1.04B3.59x0.93
TMHC
TAYLOR MORRISON HOME CORP
NYSE
Residential Construction
$3.27B$30.22-0.56%$1.41B3.41x0.95
GRBK
GREEN BRICK PARTNERS INC
NYSE
Residential Construction
$1.12B$24.30-0.29%$383.40M3.97x0.60
MTH
MERITAGE HOMES CORP
NYSE
Residential Construction
$3.22B$88.02-0.18%$1.28B3.36x0.51
DHI
HORTON D R INC
NYSE
Residential Construction
$29.59B$85.93-0.39%$7.67B5.16x0.55
LGIH
LGI HOMES INC
NASDAQ
Residential Construction
$2.24B$96.26-0.94%$516.10M5.65x0.94
MHO
M/I HOMES INC
NYSE
Residential Construction
$1.22B$44.600.34%$629.67M2.66x0.85
SKY
SKYLINE CHAMPION CORP
NYSE
Residential Construction
$3.02B$53.111.94%$579.23M7.27x0.39
MDC
MDC HOLDINGS INC
NYSE
Residential Construction
$2.31B$32.440.37%$884.18M3.57x0.77
CCS
CENTURY COMMUNITIES INC
NYSE
Residential Construction
$1.62B$50.98-0.04%$797.47M2.76x0.87
HOV
HOVNANIAN ENTERPRISES INC
NYSE
Residential Construction
$272.42M$42.60-11.51%$358.91M1.42x6.50
BZH
BEAZER HOMES USA INC
NYSE
Residential Construction
$414.72M$13.43-2.11%$287.34M1.85x1.40
TPH
TRI POINTE HOMES INC
NYSE
Residential Construction
$1.87B$18.580.65%$718.69M3.71x0.72

Construction Stocks FAQ

What are the best construction stocks to buy right now in Dec 2022?

According to Zen Score, the 3 best construction stocks to buy right now are:

1. Cavco Industries (NASDAQ:CVCO)


Cavco Industries (NASDAQ:CVCO) is the top construction stock with a Zen Score of 63, which is 20 points higher than the construction industry average of 43. It passed 21 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock lose -23.4% over the past year, underperforming other construction stocks by -1 percentage points.

Cavco Industries has an average 1 year price target of $353.50, an upside of 44.95% from Cavco Industries's current stock price of $243.87.

Cavco Industries stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Cavco Industries, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Dream Finders Homes (NASDAQ:DFH)


Dream Finders Homes (NASDAQ:DFH) is the second best construction stock with a Zen Score of 54, which is 11 points higher than the construction industry average of 43. It passed 18 out of 33 due diligence checks and has strong fundamentals. Dream Finders Homes has seen its stock lose -49.65% over the past year, underperforming other construction stocks by -27 percentage points.

Dream Finders Homes has an average 1 year price target of $10.00, an upside of 5.49% from Dream Finders Homes's current stock price of $9.48.

Dream Finders Homes stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Dream Finders Homes, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Lennar (NYSE:LEN)


Lennar (NYSE:LEN) is the third best construction stock with a Zen Score of 53, which is 10 points higher than the construction industry average of 43. It passed 19 out of 38 due diligence checks and has strong fundamentals. Lennar has seen its stock lose -22.46% over the past year.

Lennar has an average 1 year price target of $98.27, an upside of 9.89% from Lennar's current stock price of $89.43.

Lennar stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Lennar, 23.08% have issued a Strong Buy rating, 15.38% have issued a Buy, 53.85% have issued a hold, while 7.69% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the construction stocks with highest dividends?

Out of 7 construction stocks that have issued dividends in the past year, the 3 construction stocks with the highest dividend yields are:

1. Mdc Holdings (NYSE:MDC)


Mdc Holdings (NYSE:MDC) has an annual dividend yield of 6.17%, which is 4 percentage points higher than the construction industry average of 2.19%. Mdc Holdings's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Mdc Holdings's dividend has not shown consistent growth over the last 10 years.

Mdc Holdings's dividend payout ratio of 22% indicates that its high dividend yield is sustainable for the long-term.

2. Kb Home (NYSE:KBH)


Kb Home (NYSE:KBH) has an annual dividend yield of 1.9%, which is the same as the construction industry average of 2.19%. Kb Home's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Kb Home's dividend has shown consistent growth over the last 10 years.

Kb Home's dividend payout ratio of 6.8% indicates that its dividend yield is sustainable for the long-term.

3. Lennar (NYSE:LEN)


Lennar (NYSE:LEN) has an annual dividend yield of 1.68%, which is -1 percentage points lower than the construction industry average of 2.19%. Lennar's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Lennar's dividend has shown consistent growth over the last 10 years.

Lennar's dividend payout ratio of 9.1% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks down?

Construction stocks were down -0.62% in the last day, and down -0.99% over the last week.

We couldn't find a catalyst for why construction stocks are down.

What are the most undervalued construction stocks?

Based on WallStreetZen's Valuation Score, the 3 most undervalued construction stocks right now are:

1. Dream Finders Homes (NASDAQ:DFH)


Dream Finders Homes (NASDAQ:DFH) is the most undervalued construction stock based on WallStreetZen's Valuation Score. Dream Finders Homes has a valuation score of 86, which is 38 points higher than the construction industry average of 48. It passed 6 out of 7 valuation due diligence checks.

Dream Finders Homes's stock has dropped -49.65% in the past year. It has underperformed other stocks in the construction industry by -27 percentage points.

2. Hovnanian Enterprises (NYSE:HOV)


Hovnanian Enterprises (NYSE:HOV) is the second most undervalued construction stock based on WallStreetZen's Valuation Score. Hovnanian Enterprises has a valuation score of 71, which is 23 points higher than the construction industry average of 48. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has dropped -60.39% in the past year. It has underperformed other stocks in the construction industry by -38 percentage points.

3. Kb Home (NYSE:KBH)


Kb Home (NYSE:KBH) is the third most undervalued construction stock based on WallStreetZen's Valuation Score. Kb Home has a valuation score of 71, which is 23 points higher than the construction industry average of 48. It passed 5 out of 7 valuation due diligence checks.

Kb Home's stock has dropped -28.74% in the past year. It has underperformed other stocks in the construction industry by -6 percentage points.

Are construction stocks a good buy now?

42.11% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 1.39% over the next year.

What is the average p/e ratio of the residential construction industry?

The average P/E ratio of the residential construction industry is 5.76x.
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Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.