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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.

Industry: Residential Construction

Zen Rating Price Value Growth Financials Momentum Sentiment Forecast Dividends Due Diligence

Construction is Zen Rated C and is the 76th ranked industry out of 145 stock market industries

Ticker	Company	Exchange	Industry	Market Cap	Price	1d %	EBITDA	P/E	D/E	Country
CVCO	CAVCO INDUSTRIES INC	NASDAQ	Residential Construction	$3.99B	$497.97	1.77%	$230.71M	24.26x	0.31	United States
ECG	EVERUS CONSTRUCTION GROUP INC	NYSE	Residential Construction	$2.07B	$40.64	-0.37%	$232.24M	14.46x	2.05	United States
LEGH	LEGACY HOUSING CORP	NASDAQ	Residential Construction	$593.10M	$24.58	0.74%	$78.59M	9.64x	0.08	United States
UHG	UNITED HOMES GROUP INC	NASDAQ	Residential Construction	$119.55M	$2.04	-0.49%	$39.01M	2.13x	2.97	United States
LGPS	LOGPROSTYLE INC	NYSEMKT	Residential Construction	N/A	$4.04	-3.12%	$6.58M	41.22x	11.03	Japan
SKY	CHAMPION HOMES INC	NYSE	Residential Construction	$4.95B	$86.50	2.70%	$259.29M	30.35x	0.33	United States
HOV	HOVNANIAN ENTERPRISES INC	NYSE	Residential Construction	$571.97M	$96.54	-0.86%	$362.64M	2.75x	2.12	United States
GRBK	GREEN BRICK PARTNERS INC	NYSE	Residential Construction	$2.59B	$58.22	0.40%	$481.19M	6.84x	0.34	United States
TMHC	TAYLOR MORRISON HOME CORP	NYSE	Residential Construction	$5.71B	$56.93	-0.58%	$1.24B	6.50x	0.58	United States
DFH	DREAM FINDERS HOMES INC	NYSE	Residential Construction	$2.12B	$22.70	-1.30%	$455.07M	6.60x	1.53	United States
IBP	INSTALLED BUILDING PRODUCTS INC	NYSE	Residential Construction	$4.67B	$168.29	0.27%	$517.80M	18.37x	1.92	United States
LEN	LENNAR CORP	NYSE	Residential Construction	$28.38B	$107.58	-0.53%	$5.03B	7.84x	0.53	United States
TPH	TRI POINTE HOMES INC	NYSE	Residential Construction	$2.73B	$30.10	-0.69%	$603.90M	6.66x	0.45	United States
MHO	M/I HOMES INC	NYSE	Residential Construction	$2.82B	$105.23	0.03%	$687.72M	5.42x	0.53	United States
PHM	PULTEGROUP INC	NYSE	Residential Construction	$20.39B	$101.74	-0.66%	$3.91B	7.12x	0.41	United States
KBH	KB HOME	NYSE	Residential Construction	$3.82B	$53.25	-1.24%	$852.36M	6.33x	0.71	United States
MTH	MERITAGE HOMES CORP	NYSE	Residential Construction	$4.81B	$66.96	-1.08%	$954.88M	6.70x	0.48	United States
TOL	TOLL BROTHERS INC	NYSE	Residential Construction	$9.99B	$100.50	-0.61%	$2.08B	6.86x	0.75	United States
NVR	NVR INC	NYSE	Residential Construction	$21.27B	$7,113.94	1.05%	$2.16B	13.15x	0.52	United States
DHI	HORTON D R INC	NYSE	Residential Construction	$38.32B	$124.75	-0.34%	$5.74B	9.39x	0.45	United States
BZH	BEAZER HOMES USA INC	NYSE	Residential Construction	$603.78M	$19.35	-0.72%	$156.03M	4.87x	1.11	United States
LGIH	LGI HOMES INC	NASDAQ	Residential Construction	$1.28B	$54.64	-7.78%	$262.02M	6.56x	0.85	United States
CCS	CENTURY COMMUNITIES INC	NYSE	Residential Construction	$1.65B	$53.91	-0.33%	$433.50M	5.47x	0.77	United States
ONEG	ONECONSTRUCTION GROUP LTD	NASDAQ	Residential Construction	$23.08M	$1.74	-3.33%	N/A	N/A	5.69	Hong Kong

Construction Stocks FAQ

What are the best construction stocks to buy right now in May 2025?

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:

1. Cavco Industries (NASDAQ:CVCO)

Cavco Industries (NASDAQ:CVCO) is the #1 top construction stock out of 24 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 Cavco Industries (NASDAQ:CVCO) is: Value: D, Growth: B, Momentum: B, Sentiment: B, Safety: B, Financials: A, and AI: B.

Cavco Industries (NASDAQ:CVCO) has a Due Diligence Score of 44, which is 11 points higher than the construction industry average of 33.

CVCO passed 14 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 32.98% over the past year, overperforming other construction stocks by 40 percentage points.

Cavco Industries has an average 1 year price target of $487.50, a downside of -2.1% from Cavco Industries's current stock price of $497.97.

Cavco Industries stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Cavco Industries, 0% have issued a Strong Buy rating, 50% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Everus Construction Group (NYSE:ECG)

Everus Construction Group (NYSE:ECG) is the #2 top construction stock out of 24 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: C, Safety: B, Financials: C, and AI: C.

Everus Construction Group (NYSE:ECG) has a Due Diligence Score of 45, which is 12 points higher than the construction industry average of 33.

ECG passed 15 out of 33 due diligence checks and has strong fundamentals.

Everus Construction Group has an average 1 year price target of $67.50, an upside of 66.09% from Everus Construction Group's current stock price of $40.64.

Everus Construction Group stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Everus Construction Group, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Legacy Housing (NASDAQ:LEGH)

Legacy Housing (NASDAQ:LEGH) is the #3 top construction stock out of 24 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 Legacy Housing (NASDAQ:LEGH) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: C.

Legacy Housing (NASDAQ:LEGH) has a Due Diligence Score of 44, which is 11 points higher than the construction industry average of 33.

LEGH passed 13 out of 33 due diligence checks and has strong fundamentals. Legacy Housing has seen its stock return 19.03% over the past year, overperforming other construction stocks by 26 percentage points.

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. Kb Home (NYSE:KBH)

Kb Home (NYSE:KBH) has an annual dividend yield of 1.88%, which is the same as the construction industry average of 1.44%. 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 11.9% indicates that its dividend yield is sustainable for the long-term.

2. Lennar (NYSE:LEN)

Lennar (NYSE:LEN) has an annual dividend yield of 1.86%, which is the same as the construction industry average of 1.44%. 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 14.6% indicates that its dividend yield is sustainable for the long-term.

3. Installed Building Products (NYSE:IBP)

Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.85%, which is the same as the construction industry average of 1.44%. Installed Building Products's dividend payout is not stable, having dropped more than 10% three 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 32.8% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks up?

Construction stocks were up 0.84% in the last day, and down -0.45% over the last week.

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

What are the most undervalued construction stocks?

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:

1. United Homes Group (NASDAQ:UHG)

United Homes Group (NASDAQ:UHG) 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.

United Homes Group has a valuation score of 57, which is 25 points higher than the construction industry average of 32. It passed 4 out of 7 valuation due diligence checks.

United Homes Group's stock has dropped -69.51% in the past year. It has underperformed other stocks in the construction industry by -63 percentage points.

2. Taylor Morrison Home (NYSE:TMHC)

Taylor Morrison Home (NYSE:TMHC) 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.

Taylor Morrison Home has a valuation score of 43, which is 11 points higher than the construction industry average of 32. It passed 3 out of 7 valuation due diligence checks.

Taylor Morrison Home's stock has dropped -1.33% in the past year. It has overperformed other stocks in the construction industry by 6 percentage points.

3. M/I Homes (NYSE:MHO)

M/I Homes (NYSE:MHO) 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.

M/I Homes has a valuation score of 43, which is 11 points higher than the construction industry average of 32. It passed 3 out of 7 valuation due diligence checks.

M/I Homes's stock has dropped -13.19% in the past year. It has underperformed other stocks in the construction industry by -6 percentage points.

Are construction stocks a good buy now?

47.37% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 18.16% over the next year.

0% of construction stocks have a Zen Rating of A (Strong Buy), 13.04% of construction stocks are rated B (Buy), 60.87% are rated C (Hold), 26.09% are rated D (Sell), and 0% are rated F (Strong Sell).

What is the average p/e ratio of the residential construction industry?

The average P/E ratio of the residential construction industry is 9.94x.

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.