Sectors & Industries Consumer 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.

Industry: Residential Construction

Overview Zen Rating Price Value Growth Financials Momentum

Sentiment Forecast Dividends Due Diligence

Construction is Zen Rated D and is the 115th ranked industry out of 145 stock market industries

Ticker	Company	Price	Volume	Vol 1d %	SMA 10	SMA 20	SMA 50	SMA 100	SMA 200	RSI	Stochastic %K	Stochastic %D	StochRSI %K	StochRSI %D	MACD	MACD Signal	MACD Histogram	Beta
ECG	EVERUS CONSTRUCTION GROUP INC	$87.28	882,000	73.62%	88.66	89.56	90.48	86.05	71.24	46.36	41.84	52.31	46.72	65.65	-0.54	-0.41	-0.13	1.75
IBP	INSTALLED BUILDING PRODUCTS INC	$273.89	382,000	57.85%	267.26	268.42	262.11	260.65	221.40	55.05	57.59	60.17	57.77	71.47	1.39	1.38	0.01	1.34
GRBK	GREEN BRICK PARTNERS INC	$67.40	205,000	-27.30%	64.00	64.70	64.65	67.50	64.43	63.16	65.75	47.43	96.16	76.82	-0.17	-0.44	0.27	1.31
TMHC	TAYLOR MORRISON HOME CORP	$60.73	923,000	3.94%	59.24	60.17	60.28	63.18	61.63	53.43	41.08	29.26	42.80	24.24	-0.54	-0.54	0.01	1.26
TOL	TOLL BROTHERS INC	$135.56	1,583,000	29.33%	136.66	137.99	135.87	136.83	123.47	45.52	25.82	24.69	14.23	15.16	-0.34	0.20	-0.54	1.23
CVCO	CAVCO INDUSTRIES INC	$642.69	149,000	-47.90%	604.11	602.60	578.14	560.57	511.37	71.71	82.30	67.02	80.68	51.57	9.57	7.81	1.76	1.26
PHM	PULTEGROUP INC	$123.16	1,984,000	14.95%	119.32	121.33	121.25	125.68	115.83	54.27	45.27	35.28	75.54	65.25	-0.89	-1.00	0.11	1.13
SKY	CHAMPION HOMES INC	$90.93	1,236,000	114.21%	86.20	86.50	82.11	78.07	76.51	69.71	72.87	55.28	91.65	66.83	1.27	1.20	0.07	1.44
MHO	M/I HOMES INC	$131.82	200,000	-23.95%	128.63	130.48	130.17	136.91	125.37	53.91	34.21	24.45	48.41	32.21	-0.96	-0.99	0.03	1.27
TPH	TRI POINTE HOMES INC	$32.59	1,310,000	25.84%	31.78	32.36	32.36	33.22	32.40	52.88	32.09	23.40	42.35	24.76	-0.31	-0.27	-0.04	1.15
CCS	CENTURY COMMUNITIES INC	$61.59	273,000	-13.61%	59.42	60.40	60.65	62.32	60.23	54.57	40.82	28.74	52.67	42.63	-0.53	-0.55	0.02	1.33
DHI	HORTON D R INC	$145.90	4,403,000	-14.17%	145.04	148.47	148.70	157.57	144.04	46.51	24.77	21.17	37.17	26.61	-2.25	-1.79	-0.47	1.04
LEGH	LEGACY HOUSING CORP	$20.90	128,000	18.52%	19.85	20.09	20.40	23.24	23.40	59.97	64.08	45.14	77.76	53.36	-0.13	-0.24	0.11	0.86
NVR	NVR INC	$7,385.58	31,000	7.64%	7,311.45	7,398.97	7,358.17	7,681.63	7,522.00	50.47	39.05	28.39	26.77	13.00	-47.73	-33.98	-13.76	0.88
BZH	BEAZER HOMES USA INC	$21.30	446,000	25.28%	20.44	21.05	21.64	23.11	22.46	51.65	36.25	27.38	75.26	62.35	-0.40	-0.46	0.06	1.56
KBH	KB HOME	$57.61	1,114,000	-46.60%	57.02	59.53	60.89	62.09	58.41	43.82	16.89	14.78	38.39	31.85	-1.51	-1.34	-0.17	1.15
MTH	MERITAGE HOMES CORP	$68.36	971,000	17.98%	66.70	67.95	68.54	71.46	69.95	51.27	46.60	34.17	82.71	68.41	-0.80	-0.88	0.08	1.19
HOV	HOVNANIAN ENTERPRISES INC	$106.17	145,000	25.00%	100.04	102.15	112.75	124.89	115.94	51.22	40.29	27.15	77.46	58.15	-3.70	-4.63	0.93	1.83
DFH	DREAM FINDERS HOMES INC	$17.64	640,000	-11.60%	17.40	18.11	18.77	22.68	23.32	43.64	25.19	18.46	54.17	31.45	-0.58	-0.60	0.02	1.22
UHG	UNITED HOMES GROUP INC	$1.67	118,000	-73.89%	1.60	1.48	1.35	2.62	2.80	60.85	82.48	82.33	83.95	89.87	0.07	0.03	0.04	0.59
LEN	LENNAR CORP	$109.55	4,195,000	-7.60%	105.01	109.31	117.80	123.62	117.51	46.41	34.57	22.96	78.85	61.75	-4.08	-4.54	0.46	1.08
LGIH	LGI HOMES INC	$46.77	473,000	-34.31%	43.40	44.97	46.48	50.90	53.43	54.65	46.36	30.75	84.68	62.02	-1.11	-1.31	0.20	1.35
SPHL	SPRINGVIEW HOLDINGS LTD	$2.13	30,000	78.57%	2.17	2.67	3.36	3.76	3.94	38.19	18.94	14.40	43.24	31.05	-0.41	-0.40	-0.01	0.37

Construction Stocks FAQ

What are the best construction stocks to buy right now in Jan 2026?

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. Everus Construction Group (NYSE:ECG)

Everus Construction Group (NYSE:ECG) is the #1 top construction stock out of 23 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% 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: B.

Everus Construction Group (NYSE:ECG) has a Due Diligence Score of 47, which is 14 points higher than the construction industry average of 33.

ECG passed 16 out of 33 due diligence checks and has strong fundamentals. Everus Construction Group has seen its stock return 30.93% over the past year, overperforming other construction stocks by 35 percentage points.

Everus Construction Group has an average 1 year price target of $84.00, a downside of -3.76% from Everus Construction Group's current stock price of $87.28.

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

2. Installed Building Products (NYSE:IBP)

Installed Building Products (NYSE:IBP) is the #2 top construction stock out of 23 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 Installed Building Products (NYSE:IBP) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: A, Financials: A, and AI: C.

Installed Building Products (NYSE:IBP) has a Due Diligence Score of 52, which is 19 points higher than the construction industry average of 33.

IBP passed 20 out of 38 due diligence checks and has strong fundamentals. Installed Building Products has seen its stock return 55.49% over the past year, overperforming other construction stocks by 60 percentage points.

Installed Building Products has an average 1 year price target of $238.00, a downside of -13.1% from Installed Building Products's current stock price of $273.89.

Installed Building Products stock has a consensus Hold recommendation according to Wall Street analysts. Of the 3 analysts covering Installed Building Products, 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.

3. Green Brick Partners (NYSE:GRBK)

Green Brick Partners (NYSE:GRBK) is the #3 top construction stock out of 23 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 Green Brick Partners (NYSE:GRBK) is: Value: C, Growth: F, Momentum: C, Sentiment: B, Safety: D, Financials: B, and AI: B.

Green Brick Partners (NYSE:GRBK) has a Due Diligence Score of 43, which is 10 points higher than the construction industry average of 33.

GRBK passed 14 out of 33 due diligence checks and has strong fundamentals. Green Brick Partners has seen its stock return 21.51% 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. Meritage Homes (NYSE:MTH)

Meritage Homes (NYSE:MTH) has an annual dividend yield of 1.89%, which is 1 percentage points higher than the construction industry average of 1.31%. 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 27.1% indicates that its dividend yield is sustainable for the long-term.

2. Lennar (NYSE:LEN)

Lennar (NYSE:LEN) has an annual dividend yield of 1.83%, which is 1 percentage points higher than the construction industry average of 1.31%. 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 19.8% indicates that its dividend yield is sustainable for the long-term.

3. Kb Home (NYSE:KBH)

Kb Home (NYSE:KBH) has an annual dividend yield of 1.74%, which is the same as the construction industry average of 1.31%. 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 13.8% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks up?

Construction stocks were up 3.62% in the last day, and up 2.23% 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. M/I Homes (NYSE:MHO)

M/I Homes (NYSE:MHO) 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.

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 gained 3.08% in the past year. It has overperformed other stocks in the construction industry by 7 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 -0.36% in the past year. It has overperformed other stocks in the construction industry by 4 percentage points.

3. Century Communities (NYSE:CCS)

Century Communities (NYSE:CCS) 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.

Century Communities 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.

Century Communities's stock has dropped -14.74% in the past year. It has underperformed other stocks in the construction industry by -11 percentage points.

Are construction stocks a good buy now?

36.84% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 11.16% over the next year.

4.55% of construction stocks have a Zen Rating of A (Strong Buy), 0% of construction stocks are rated B (Buy), 68.18% are rated C (Hold), 22.73% are rated D (Sell), and 4.55% 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 12.99x.

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.

Sectors & Industries Consumer 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.

Construction Stocks FAQ

1. Everus Construction Group (NYSE:ECG)

2. Installed Building Products (NYSE:IBP)

3. Green Brick Partners (NYSE:GRBK)

1. Meritage Homes (NYSE:MTH)

2. Lennar (NYSE:LEN)

3. Kb Home (NYSE:KBH)

1. M/I Homes (NYSE:MHO)

2. Taylor Morrison Home (NYSE:TMHC)

3. Century Communities (NYSE:CCS)

Company

Stock Tools

Stock Ideas

Sectors & IndustriesConsumer CyclicalResidential ConstructionBest 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.

Construction Stocks FAQ

1. Everus Construction Group (NYSE:ECG)

2. Installed Building Products (NYSE:IBP)

3. Green Brick Partners (NYSE:GRBK)

1. Meritage Homes (NYSE:MTH)

2. Lennar (NYSE:LEN)

3. Kb Home (NYSE:KBH)

1. M/I Homes (NYSE:MHO)

2. Taylor Morrison Home (NYSE:TMHC)

3. Century Communities (NYSE:CCS)

Company

Stock Tools

Stock Ideas

Sectors & Industries Consumer 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.