Sectors & IndustriesConsumer CyclicalResidential Construction

Best Construction Stocks to Buy Now (2026)

Top construction stocks in 2026 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 21 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: B, Sentiment: A, Safety: C, Financials: B, and AI: C.

Everus Construction Group (NYSE:ECG) has a Due Diligence Score of 44, which is 12 points higher than the construction industry average of 32.

ECG passed 15 out of 33 due diligence checks and has strong fundamentals. Everus Construction Group has seen its stock return 152.2% over the past year, overperforming other construction stocks by 164 percentage points.

Everus Construction Group has an average 1 year price target of $146.63, a downside of -1.43% from Everus Construction Group's current stock price of $148.75.

Everus Construction Group stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Everus Construction Group, 37.5% have issued a Strong Buy rating, 12.5% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Toll Brothers (NYSE:TOL) is the #2 top construction stock out of 21 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 Toll Brothers (NYSE:TOL) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: D, Financials: B, and AI: B.

Toll Brothers (NYSE:TOL) has a Due Diligence Score of 37, which is 5 points higher than the construction industry average of 32.

TOL passed 13 out of 38 due diligence checks and has average fundamentals. Toll Brothers has seen its stock return 30.43% over the past year, overperforming other construction stocks by 42 percentage points.

Toll Brothers has an average 1 year price target of $165.92, an upside of 21.72% from Toll Brothers's current stock price of $136.31.

Toll Brothers stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Toll Brothers, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 8.33% have issued a Strong Sell.

Hovnanian Enterprises (NYSE:HOV) is the #3 top construction stock out of 21 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 Hovnanian Enterprises (NYSE:HOV) is: Value: B, Growth: D, Momentum: D, Sentiment: C, Safety: C, Financials: C, and AI: B.

Hovnanian Enterprises (NYSE:HOV) has a Due Diligence Score of 14, which is -18 points lower than the construction industry average of 32.

HOV passed 4 out of 33 due diligence checks and has weak fundamentals. Hovnanian Enterprises has seen its stock return 1.96% over the past year, overperforming other construction stocks by 14 percentage points.

Hovnanian Enterprises has an average 1 year price target of $74.00, a downside of -24.5% from Hovnanian Enterprises's current stock price of $98.01.

Hovnanian Enterprises stock has a consensus Sell recommendation according to Wall Street analysts. Of the 1 analyst covering Hovnanian Enterprises, 0% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 100% 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:

Lennar (NYSE:LEN) has an annual dividend yield of 2.29%, which is 1 percentage points higher than the construction industry average of 1.58%. 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 28.8% indicates that its dividend yield is sustainable for the long-term.

Kb Home (NYSE:KBH) has an annual dividend yield of 2.13%, which is 1 percentage points higher than the construction industry average of 1.58%. 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 18.9% indicates that its dividend yield is sustainable for the long-term.

Meritage Homes (NYSE:MTH) has an annual dividend yield of 2.1%, which is 1 percentage points higher than the construction industry average of 1.58%. 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 32.1% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were up 4.17% in the last day, and up 4.03% over the last week. Dream Finders Homes was the among the top gainers in the residential construction industry, gaining 10.82% yesterday.

Shares of homebuilders are trading higher amid a drop in bond yields, which may help funding for new construction and increase demand from homebuyers.

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:

Toll Brothers (NYSE:TOL) is the 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.

Toll Brothers has a valuation score of 29, which is 0 points higher than the construction industry average of 29. It passed 2 out of 7 valuation due diligence checks.

Toll Brothers's stock has gained 30.43% in the past year. It has overperformed other stocks in the construction industry by 42 percentage points.

M/I Homes (NYSE:MHO) 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.

M/I Homes has a valuation score of 43, which is 14 points higher than the construction industry average of 29. It passed 3 out of 7 valuation due diligence checks.

M/I Homes's stock has gained 16.08% in the past year. It has overperformed other stocks in the construction industry by 28 percentage points.

Taylor Morrison Home (NYSE:TMHC) 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.

Taylor Morrison Home has a valuation score of 43, which is 14 points higher than the construction industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Taylor Morrison Home's stock has dropped -2.26% in the past year. It has overperformed other stocks in the construction industry by 10 percentage points.

46.67% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 17.19% over the next year.

0% of construction stocks have a Zen Rating of A (Strong Buy), 5.26% of construction stocks are rated B (Buy), 73.68% are rated C (Hold), 21.05% are rated D (Sell), and 0% are rated F (Strong Sell).