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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.

Industry: Residential Construction
Ticker
Company
Exchange
Industry
Zen Score
Market Cap
Price
1d %
EBITDA
P/E
D/E
MTH
MERITAGE HOMES CORP
NYSE
Residential Construction
$5.44B$150.430.23%$974.76M7.46x0.38
TMHC
TAYLOR MORRISON HOME CORP
NYSE
Residential Construction
$5.77B$54.220.35%$1.04B7.65x0.63
CVCO
CAVCO INDUSTRIES INC
NASDAQ
Residential Construction
$2.99B$358.202.67%$234.92M17.96x0.32
IBP
INSTALLED BUILDING PRODUCTS INC
NYSE
Residential Construction
$6.28B$221.34-1.45%$495.80M25.59x1.96
LEN
LENNAR CORP
NYSE
Residential Construction
$41.80B$150.19-1.51%$5.45B10.55x0.46
KBH
KB HOME
NYSE
Residential Construction
$4.63B$61.031.03%$820.78M8.05x0.72
LEGH
LEGACY HOUSING CORP
NASDAQ
Residential Construction
$487.78M$19.992.04%$71.34M8.96x0.16
DHI
HORTON D R INC
NYSE
Residential Construction
$47.18B$142.19-2.53%$6.34B10.16x0.42
GRBK
GREEN BRICK PARTNERS INC
NYSE
Residential Construction
$2.35B$52.340.71%$372.81M8.44x0.42
LGIH
LGI HOMES INC
NASDAQ
Residential Construction
$2.20B$93.38-0.05%$264.16M11.01x0.84
HOV
HOVNANIAN ENTERPRISES INC
NYSE
Residential Construction
$794.02M$130.260.95%$328.89M4.42x2.86
TPH
TRI POINTE HOMES INC
NYSE
Residential Construction
$3.33B$34.930.90%$488.72M10.04x0.63
MHO
M/I HOMES INC
NYSE
Residential Construction
$3.09B$111.090.36%$601.75M6.63x0.60
PHM
PULTEGROUP INC
NYSE
Residential Construction
$22.36B$105.43-0.50%$3.53B8.94x0.55
TOL
TOLL BROTHERS INC
NYSE
Residential Construction
$11.69B$112.21-0.84%$1.98B8.61x0.78
CCS
CENTURY COMMUNITIES INC
NYSE
Residential Construction
$2.51B$79.030.32%$366.60M9.73x0.73
DFH
DREAM FINDERS HOMES INC
NYSE
Residential Construction
$3.15B$33.79-1.17%$422.32M11.15x1.38
BZH
BEAZER HOMES USA INC
NYSE
Residential Construction
$829.95M$26.312.02%$188.91M5.13x1.13
SKY
SKYLINE CHAMPION CORP
NYSE
Residential Construction
$4.34B$75.142.43%$297.85M21.35x0.32
NVR
NVR INC
NYSE
Residential Construction
$24.49B$7,685.00-0.22%$1.97B15.64x0.51
UHG
UNITED HOMES GROUP INC
NASDAQ
Residential Construction
$307.16M$6.350.63%$129.35M2.32x-10.58

Construction Stocks FAQ

What are the best construction stocks to buy right now in Apr 2024?

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

1. Meritage Homes (NYSE:MTH)


Meritage Homes (NYSE:MTH) is the top construction stock with a Zen Score of 48, which is 10 points higher than the construction industry average of 38. It passed 17 out of 38 due diligence checks and has strong fundamentals. Meritage Homes has seen its stock return 19.6% over the past year, underperforming other construction stocks by -13 percentage points.

Meritage Homes has an average 1 year price target of $161.00, an upside of 7.03% from Meritage Homes's current stock price of $150.43.

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

2. Taylor Morrison Home (NYSE:TMHC)


Taylor Morrison Home (NYSE:TMHC) is the second best construction stock with a Zen Score of 47, which is 9 points higher than the construction industry average of 38. It passed 15 out of 33 due diligence checks and has strong fundamentals. Taylor Morrison Home has seen its stock return 37.27% over the past year, overperforming other construction stocks by 5 percentage points.

Taylor Morrison Home has an average 1 year price target of $56.00, an upside of 3.28% from Taylor Morrison Home's current stock price of $54.22.

Taylor Morrison Home stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Taylor Morrison Home, 20% have issued a Strong Buy rating, 40% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Cavco Industries (NASDAQ:CVCO)


Cavco Industries (NASDAQ:CVCO) is the third best construction stock with a Zen Score of 45, which is 7 points higher than the construction industry average of 38. It passed 14 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 17.93% over the past year, underperforming other construction stocks by -14 percentage points.

Cavco Industries has an average 1 year price target of $380.00, an upside of 6.09% from Cavco Industries's current stock price of $358.20.

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

What are the construction stocks with highest dividends?

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

1. Installed Building Products (NYSE:IBP)


Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.33%, which is the same as the construction industry average of 1.01%.

Installed Building Products's dividend payout ratio of 25.7% indicates that its dividend yield is sustainable for the long-term.

2. Kb Home (NYSE:KBH)


Kb Home (NYSE:KBH) has an annual dividend yield of 1.23%, which is the same as the construction industry average of 1.01%. 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 9.9% indicates that its dividend yield is sustainable for the long-term.

3. Century Communities (NYSE:CCS)


Century Communities (NYSE:CCS) has an annual dividend yield of 1.2%, which is the same as the construction industry average of 1.01%.

Century Communities's dividend payout ratio of 11.3% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks down?

Construction stocks were down -0.13% in the last day, and down -2.61% 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. Century Communities (NYSE:CCS)


Century Communities (NYSE:CCS) is the most undervalued construction stock based on WallStreetZen's Valuation Score. Century Communities has a valuation score of 71, which is 19 points higher than the construction industry average of 52. It passed 5 out of 7 valuation due diligence checks.

Century Communities's stock has gained 20.9% in the past year. It has underperformed other stocks in the construction industry by -11 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 19 points higher than the construction industry average of 52. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has gained 85.21% in the past year. It has overperformed other stocks in the construction industry by 53 percentage points.

3. Beazer Homes Usa (NYSE:BZH)


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 71, which is 19 points higher than the construction industry average of 52. It passed 5 out of 7 valuation due diligence checks.

Beazer Homes Usa's stock has gained 55.59% in the past year. It has overperformed other stocks in the construction industry by 23 percentage points.

Are construction stocks a good buy now?

55.56% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 9.4% 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 11.24x.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

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.