Sectors & IndustriesConsumer CyclicalResidential Construction

Best Construction Stocks to Buy Now (2025)

Top construction stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best construction stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best construction stocks to buy right now are:

Everus Construction Group (NYSE:ECG) is the #1 top construction stock out of 25 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Everus Construction Group (NYSE:ECG) is: Value: C, Growth: C, Momentum: C, Sentiment: A, Safety: B, Financials: B, and AI: C.

Everus Construction Group (NYSE:ECG) has a Due Diligence Score of 39, which is 7 points higher than the construction industry average of 32.

ECG passed 13 out of 33 due diligence checks and has average fundamentals.

Everus Construction Group has an average 1 year price target of $80.33, an upside of 5.55% from Everus Construction Group's current stock price of $76.11.

Everus Construction Group stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Everus Construction Group, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Installed Building Products (NYSE:IBP) is the #2 top construction stock out of 25 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Installed Building Products (NYSE:IBP) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: A, Financials: A, and AI: C.

Installed Building Products (NYSE:IBP) has a Due Diligence Score of 48, which is 16 points higher than the construction industry average of 32.

IBP passed 18 out of 38 due diligence checks and has strong fundamentals. Installed Building Products has seen its stock return 25.43% over the past year, overperforming other construction stocks by 33 percentage points.

Installed Building Products has an average 1 year price target of $204.33, a downside of -25.17% from Installed Building Products's current stock price of $273.08.

Installed Building Products stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Installed Building Products, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 16.67% have issued a Sell rating, and 0% have issued a Strong Sell.

Cavco Industries (NASDAQ:CVCO) is the #3 top construction stock out of 25 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Cavco Industries (NASDAQ:CVCO) is: Value: C, Growth: C, Momentum: D, Sentiment: C, Safety: C, Financials: A, and AI: B.

Cavco Industries (NASDAQ:CVCO) has a Due Diligence Score of 58, which is 26 points higher than the construction industry average of 32.

CVCO passed 19 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 33.42% over the past year, overperforming other construction stocks by 41 percentage points.

Cavco Industries has an average 1 year price target of $550.00, an upside of 5.86% from Cavco Industries's current stock price of $519.55.

Cavco Industries stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Cavco Industries, 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.

Out of 6 construction stocks that have issued dividends in the past year, the 3 construction stocks with the highest dividend yields are:

Kb Home (NYSE:KBH) has an annual dividend yield of 1.54%, which is the same as the construction industry average of 1.06%. 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 12.9% indicates that its dividend yield is sustainable for the long-term.

Lennar (NYSE:LEN) has an annual dividend yield of 1.47%, which is the same as the construction industry average of 1.06%. 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 16.6% indicates that its dividend yield is sustainable for the long-term.

Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.15%, which is the same as the construction industry average of 1.06%. Installed Building Products's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Installed Building Products's dividend has shown consistent growth over the last 10 years.

Installed Building Products's dividend payout ratio of 34.7% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were up 3.84% in the last day, and up 0.58% over the last week. Dream Finders Homes was the among the top gainers in the residential construction industry, gaining 7.89% yesterday.

Shares of homebuilding and housing-related stocks are trading higher after Fed Chair Powell said restrictive policy and shifting risks may warrant adjusting the Fed's stance. A potential rate cut could support housing demand.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued construction stocks right now are:

Taylor Morrison Home (NYSE:TMHC) is the most undervalued construction stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Taylor Morrison Home has a valuation score of 43, which is 9 points higher than the construction industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Taylor Morrison Home's stock has gained 6.39% in the past year. It has overperformed other stocks in the construction industry by 14 percentage points.

Kb Home (NYSE:KBH) is the second most undervalued construction stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Kb Home has a valuation score of 43, which is 9 points higher than the construction industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Kb Home's stock has dropped -20.82% in the past year. It has underperformed other stocks in the construction industry by -13 percentage points.

Hovnanian Enterprises (NYSE:HOV) is the third most undervalued construction stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Hovnanian Enterprises has a valuation score of 43, which is 9 points higher than the construction industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has dropped -38.62% in the past year. It has underperformed other stocks in the construction industry by -31 percentage points.

42.86% of construction stocks rated by analysts are a hold right now. On average, analysts expect construction stocks to fall by -3.73% over the next year.

0% of construction stocks have a Zen Rating of A (Strong Buy), 4.35% of construction stocks are rated B (Buy), 69.57% are rated C (Hold), 17.39% are rated D (Sell), and 8.7% are rated F (Strong Sell).