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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
LEN
LENNAR CORP
NYSE
Residential Construction
$43.39B$155.88-4.20%$5.45B10.95x0.46
IBP
INSTALLED BUILDING PRODUCTS INC
NYSE
Residential Construction
$5.90B$207.25-1.81%$507.90M23.34x1.95
MTH
MERITAGE HOMES CORP
NYSE
Residential Construction
$6.34B$174.58-2.07%$1.04B8.04x0.38
CVCO
CAVCO INDUSTRIES INC
NASDAQ
Residential Construction
$2.95B$353.72-2.38%$234.92M17.74x0.32
TMHC
TAYLOR MORRISON HOME CORP
NYSE
Residential Construction
$6.08B$57.49-2.61%$1.04B8.07x0.64
KBH
KB HOME
NYSE
Residential Construction
$5.30B$69.77-2.15%$820.78M9.20x0.72
GRBK
GREEN BRICK PARTNERS INC
NYSE
Residential Construction
$2.46B$54.67-3.19%$398.11M8.21x0.39
DHI
HORTON D R INC
NYSE
Residential Construction
$47.62B$144.59-3.21%$6.61B9.78x0.42
LEGH
LEGACY HOUSING CORP
NASDAQ
Residential Construction
$572.90M$23.56-0.80%$70.30M10.76x0.13
HOV
HOVNANIAN ENTERPRISES INC
NYSE
Residential Construction
$905.51M$148.55-12.15%$328.89M5.04x2.86
MHO
M/I HOMES INC
NYSE
Residential Construction
$3.44B$123.78-3.40%$647.32M6.90x0.60
TOL
TOLL BROTHERS INC
NYSE
Residential Construction
$12.42B$119.20-8.46%$1.98B9.14x0.78
PHM
PULTEGROUP INC
NYSE
Residential Construction
$24.02B$114.20-3.14%$3.70B9.08x0.53
CCS
CENTURY COMMUNITIES INC
NYSE
Residential Construction
$2.69B$84.68-2.57%$409.10M9.31x0.70
LGIH
LGI HOMES INC
NASDAQ
Residential Construction
$2.30B$97.50-2.64%$255.10M12.08x0.89
BZH
BEAZER HOMES USA INC
NYSE
Residential Construction
$874.81M$27.73-3.38%$195.57M5.27x1.17
DFH
DREAM FINDERS HOMES INC
NYSE
Residential Construction
$2.59B$27.63-3.59%$423.37M8.94x1.62
TPH
TRI POINTE HOMES INC
NYSE
Residential Construction
$3.63B$38.23-1.87%$517.54M10.11x0.63
SKY
SKYLINE CHAMPION CORP
NYSE
Residential Construction
$4.16B$71.96-7.36%$297.85M20.44x0.32
NVR
NVR INC
NYSE
Residential Construction
$23.36B$7,457.73-2.13%$2.01B14.65x0.51
UHG
UNITED HOMES GROUP INC
NASDAQ
Residential Construction
$278.62M$5.762.67%$359.90M0.80x-61.75

Construction Stocks FAQ

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

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

1. Lennar (NYSE:LEN)


Lennar (NYSE:LEN) is the top construction stock with a Zen Score of 48, which is 9 points higher than the construction industry average of 39. It passed 17 out of 38 due diligence checks and has strong fundamentals. Lennar has seen its stock return 41.07% over the past year, overperforming other construction stocks by 9 percentage points.

Lennar has an average 1 year price target of $170.77, an upside of 9.55% from Lennar's current stock price of $155.88.

Lennar stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Lennar, 38.46% have issued a Strong Buy rating, 30.77% have issued a Buy, 15.38% have issued a hold, while 15.38% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Cavco Industries (NASDAQ:CVCO)


Cavco Industries (NASDAQ:CVCO) is the second best construction stock with a Zen Score of 45, which is 6 points higher than the construction industry average of 39. It passed 14 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 24.53% over the past year, underperforming other construction stocks by -8 percentage points.

Cavco Industries has an average 1 year price target of $425.00, an upside of 20.15% from Cavco Industries's current stock price of $353.72.

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.

3. Meritage Homes (NYSE:MTH)


Meritage Homes (NYSE:MTH) is the third best construction stock with a Zen Score of 45, which is 6 points higher than the construction industry average of 39. It passed 16 out of 38 due diligence checks and has strong fundamentals. Meritage Homes has seen its stock return 44.92% over the past year, overperforming other construction stocks by 13 percentage points.

Meritage Homes has an average 1 year price target of $175.00, an upside of 0.24% from Meritage Homes's current stock price of $174.58.

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, 0% have issued a Buy, 66.67% have issued a hold, while 33.33% 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 1.42%, which is the same as the construction industry average of 0.99%.

Installed Building Products's dividend payout ratio of 33.1% 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 1.22%, which is the same as the construction industry average of 0.99%. 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. Lennar (NYSE:LEN)


Lennar (NYSE:LEN) has an annual dividend yield of 1.12%, which is the same as the construction industry average of 0.99%. 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 11.4% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks down?

Construction stocks were down -2.53% in the last day, and down -5.74% over the last week. Hovnanian Enterprises was the among the top losers in the residential construction industry, dropping -12.15% yesterday.

Hovnanian Enterprises shares are trading lower. The company reported Q2 financial results.

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 21 points higher than the construction industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Century Communities's stock has gained 28.11% in the past year. It has underperformed other stocks in the construction industry by -4 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 21 points higher than the construction industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has gained 63.82% in the past year. It has overperformed other stocks in the construction industry by 32 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 21 points higher than the construction industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Beazer Homes Usa's stock has gained 34.16% in the past year. It has overperformed other stocks in the construction industry by 2 percentage points.

Are construction stocks a good buy now?

52.63% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 10.08% 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 10.98x.
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.