Sectors & IndustriesConsumer CyclicalResidential Construction

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.

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:

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: C, Sentiment: B, Safety: B, Financials: A, and AI: B.

Cavco Industries (NASDAQ:CVCO) has a Due Diligence Score of 43, which is 10 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 41.86% over the past year, overperforming other construction stocks by 48 percentage points.

Cavco Industries has an average 1 year price target of $480.00, a downside of -8.93% from Cavco Industries's current stock price of $527.04.

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

Legacy Housing (NASDAQ:LEGH) 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 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 20.46% over the past year, overperforming other construction stocks by 26 percentage points.

Everus Construction Group (NYSE:ECG) 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 Everus Construction Group (NYSE:ECG) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: B, 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 39.84% from Everus Construction Group's current stock price of $48.27.

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.

Out of 8 construction stocks that have issued dividends in the past year, the 3 construction stocks with the highest dividend yields are:

Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.92%, which is 1 percentage points higher than the construction industry average of 1.38%. 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 35.3% indicates that its dividend yield is sustainable for the long-term.

Lennar (NYSE:LEN) has an annual dividend yield of 1.83%, which is the same as the construction industry average of 1.38%. 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.

Meritage Homes (NYSE:MTH) has an annual dividend yield of 1.71%, which is the same as the construction industry average of 1.38%. 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 19.3% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were up 1.81% in the last day, and up 2.85% over the last week.

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

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:

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 71, which is 40 points higher than the construction industry average of 31. It passed 5 out of 7 valuation due diligence checks.

United Homes Group's stock has dropped -74.37% in the past year. It has underperformed other stocks in the construction industry by -69 percentage points.

Taylor Morrison Home (NYSE:TMHC) is the second 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.

Taylor Morrison Home has a valuation score of 43, which is 12 points higher than the construction industry average of 31. It passed 3 out of 7 valuation due diligence checks.

Taylor Morrison Home's stock has gained 1.13% in the past year. It has overperformed other stocks in the construction industry by 7 percentage points.

Toll Brothers (NYSE:TOL) 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.

Toll Brothers has a valuation score of 43, which is 12 points higher than the construction industry average of 31. It passed 3 out of 7 valuation due diligence checks.

Toll Brothers's stock has dropped -16.26% in the past year. It has underperformed other stocks in the construction industry by -11 percentage points.

42.11% of construction stocks rated by analysts are a hold right now. On average, analysts expect construction stocks to rise by 15.64% 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), 21.74% are rated D (Sell), and 4.35% are rated F (Strong Sell).