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 +28.50% 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:

Green Brick Partners (NYSE:GRBK) is the #1 top construction stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Green Brick Partners (NYSE:GRBK) is: Value: C, Growth: D, Momentum: C, Sentiment: B, Safety: D, Financials: A, and AI: C.

Green Brick Partners (NYSE:GRBK) has a Due Diligence Score of 34, which is 5 points higher than the construction industry average of 29.

GRBK passed 11 out of 33 due diligence checks and has average fundamentals. Green Brick Partners has seen its stock return 11.74% over the past year, overperforming other construction stocks by 20 percentage points.

Legacy Housing (NASDAQ:LEGH) is the #2 top construction stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Legacy Housing (NASDAQ:LEGH) is: Value: C, Growth: D, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Legacy Housing (NASDAQ:LEGH) has a Due Diligence Score of 40, which is 11 points higher than the construction industry average of 29.

LEGH passed 12 out of 33 due diligence checks and has average fundamentals. Legacy Housing has seen its stock return 20.24% over the past year, overperforming other construction stocks by 28 percentage points.

Toll Brothers (NYSE:TOL) is the #3 top construction stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Toll Brothers (NYSE:TOL) is: Value: B, Growth: F, Momentum: C, Sentiment: C, Safety: D, Financials: B, and AI: C.

Toll Brothers (NYSE:TOL) has a Due Diligence Score of 37, which is 8 points higher than the construction industry average of 29.

TOL passed 13 out of 38 due diligence checks and has average fundamentals. Toll Brothers has seen its stock return 26.19% over the past year, overperforming other construction stocks by 34 percentage points.

Toll Brothers has an average 1 year price target of $167.25, an upside of 13.62% from Toll Brothers's current stock price of $147.20.

Toll Brothers stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Toll Brothers, 50% have issued a Strong Buy rating, 41.67% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 8.33% 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 2.54%, which is 1 percentage points higher than the construction industry average of 1.62%. 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.

Lennar (NYSE:LEN) has an annual dividend yield of 2.44%, which is 1 percentage points higher than the construction industry average of 1.62%. 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 31.3% indicates that its dividend yield is sustainable for the long-term.

Century Communities (NYSE:CCS) has an annual dividend yield of 1.91%, which is the same as the construction industry average of 1.62%. Century Communities's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Century Communities's dividend has shown consistent growth over the last 10 years.

Century Communities's dividend payout ratio of 26.6% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were down -1.33% in the last day, and down -0.77% over the last week.

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

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 11 points higher than the construction industry average of 18. It passed 2 out of 7 valuation due diligence checks.

Toll Brothers's stock has gained 26.19% in the past year. It has overperformed other stocks in the construction industry by 34 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 25 points higher than the construction industry average of 18. It passed 3 out of 7 valuation due diligence checks.

M/I Homes's stock has gained 28.55% in the past year. It has overperformed other stocks in the construction industry by 36 percentage points.

Pultegroup (NYSE:PHM) 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.

Pultegroup has a valuation score of 29, which is 11 points higher than the construction industry average of 18. It passed 2 out of 7 valuation due diligence checks.

Pultegroup's stock has gained 14.37% in the past year. It has overperformed other stocks in the construction industry by 22 percentage points.

28.57% of construction stocks rated by analysts are a hold right now. On average, analysts expect construction stocks to rise by 6.3% over the next year.

0% of construction stocks have a Zen Rating of A (Strong Buy), 0% of construction stocks are rated B (Buy), 82.35% are rated C (Hold), 17.65% are rated D (Sell), and 0% are rated F (Strong Sell).