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Best Construction Stocks to Buy Now (2024)

Top construction stocks in 2024 ranked by overall Zen Score. See the best construction stocks to buy now, according to analyst forecasts for the residential construction industry.

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

Horton D R (NYSE:DHI) is the top construction stock with a Zen Score of 51, which is 15 points higher than the construction industry average of 36. It passed 20 out of 38 due diligence checks and has strong fundamentals. Horton D R has seen its stock return 79.02% over the past year, overperforming other construction stocks by 12 percentage points.

Horton D R has an average 1 year price target of $185.85, a downside of -0.68% from Horton D R's current stock price of $187.11.

Horton D R stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Horton D R, 38.46% have issued a Strong Buy rating, 23.08% have issued a Buy, 23.08% have issued a hold, while 15.38% have issued a Sell rating, and 0% have issued a Strong Sell.

Green Brick Partners (NYSE:GRBK) is the second best construction stock with a Zen Score of 50, which is 14 points higher than the construction industry average of 36. It passed 17 out of 33 due diligence checks and has strong fundamentals. Green Brick Partners has seen its stock return 104.11% over the past year, overperforming other construction stocks by 37 percentage points.

Green Brick Partners has an average 1 year price target of $65.50, a downside of -19.63% from Green Brick Partners's current stock price of $81.50.

Green Brick Partners stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Green Brick Partners, 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.

Legacy Housing (NASDAQ:LEGH) is the third best construction stock with a Zen Score of 47, which is 11 points higher than the construction industry average of 36. It passed 14 out of 33 due diligence checks and has strong fundamentals. Legacy Housing has seen its stock return 40.75% over the past year, underperforming other construction stocks by -26 percentage points.

Legacy Housing has an average 1 year price target of $29.00, an upside of 8.61% from Legacy Housing's current stock price of $26.70.

Legacy Housing stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Legacy Housing, 0% have issued a Strong Buy rating, 50% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 8 construction stocks that have issued dividends in the past year, the 3 construction stocks with the highest dividend yields are:

Meritage Homes (NYSE:MTH) has an annual dividend yield of 1.28%, which is the same as the construction industry average of 0.9%. Meritage Homes's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Meritage Homes's dividend has shown consistent growth over the last 10 years.

Meritage Homes's dividend payout ratio of 8.9% indicates that its dividend yield is sustainable for the long-term.

Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.19%, which is the same as the construction industry average of 0.9%.

Installed Building Products's dividend payout ratio of 32.9% indicates that its dividend yield is sustainable for the long-term.

Kb Home (NYSE:KBH) has an annual dividend yield of 1.11%, which is the same as the construction industry average of 0.9%. 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 11.2% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were up 2.18% in the last day, and up 3.02% over the last week.

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

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

Hovnanian Enterprises (NYSE:HOV) is the most undervalued construction stock based on WallStreetZen's Valuation Score. Hovnanian Enterprises has a valuation score of 71, which is 33 points higher than the construction industry average of 38. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has gained 149.11% in the past year. It has overperformed other stocks in the construction industry by 82 percentage points.

Taylor Morrison Home (NYSE:TMHC) is the second most undervalued construction stock based on WallStreetZen's Valuation Score. Taylor Morrison Home has a valuation score of 71, which is 33 points higher than the construction industry average of 38. It passed 5 out of 7 valuation due diligence checks.

Taylor Morrison Home's stock has gained 67.15% in the past year. It has performed in line with other stocks in the construction industry.

Beazer Homes Usa (NYSE:BZH) is the third most undervalued construction stock based on WallStreetZen's Valuation Score. Beazer Homes Usa has a valuation score of 57, which is 19 points higher than the construction industry average of 38. It passed 4 out of 7 valuation due diligence checks.

Beazer Homes Usa's stock has gained 38.76% in the past year. It has underperformed other stocks in the construction industry by -28 percentage points.