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:

Legacy Housing (NASDAQ:LEGH) is the #1 top construction stock out of 18 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

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

Legacy Housing (NASDAQ:LEGH) has a Due Diligence Score of 49, which is 16 points higher than the construction industry average of 33.

LEGH passed 15 out of 33 due diligence checks and has strong fundamentals. Legacy Housing has seen its stock return 32.91% over the past year, overperforming other construction stocks by 47 percentage points.

Installed Building Products (NYSE:IBP) is the #2 top construction stock out of 18 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 Installed Building Products (NYSE:IBP) is: Value: C, Growth: C, Momentum: D, Sentiment: C, Safety: A, Financials: A, and AI: C.

Installed Building Products (NYSE:IBP) has a Due Diligence Score of 42, which is 9 points higher than the construction industry average of 33.

IBP passed 16 out of 38 due diligence checks and has strong fundamentals. Installed Building Products has seen its stock lose -16.01% over the past year, underperforming other construction stocks by -2 percentage points.

Installed Building Products has an average 1 year price target of $216.33, an upside of 1.4% from Installed Building Products's current stock price of $213.35.

Installed Building Products stock has a consensus Hold recommendation according to Wall Street analysts. Of the 9 analysts covering Installed Building Products, 22.22% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 11.11% have issued a Strong Sell.

Cavco Industries (NASDAQ:CVCO) is the #3 top construction stock out of 18 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 Cavco Industries (NASDAQ:CVCO) is: Value: C, Growth: D, Momentum: C, Sentiment: C, Safety: C, Financials: B, and AI: C.

Cavco Industries (NASDAQ:CVCO) has a Due Diligence Score of 45, which is 12 points higher than the construction industry average of 33.

CVCO passed 15 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 22.82% over the past year, overperforming other construction stocks by 37 percentage points.

Cavco Industries has an average 1 year price target of $720.00, an upside of 16.32% from Cavco Industries's current stock price of $619.00.

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.

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 2.9%, which is 1 percentage points higher than the construction industry average of 1.75%. 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 41.7% indicates that its dividend yield is sustainable for the long-term.

Century Communities (NYSE:CCS) has an annual dividend yield of 2.38%, which is 1 percentage points higher than the construction industry average of 1.75%. 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 33.2% indicates that its dividend yield is sustainable for the long-term.

Lennar (NYSE:LEN) has an annual dividend yield of 2.3%, which is 1 percentage points higher than the construction industry average of 1.75%. 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 37.9% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were up 0.18% in the last day, and up 1.11% over the last week. Cavco Industries was the among the top gainers in the residential construction industry, gaining 13.11% yesterday.

Cavco Industries shares are trading higher after the company reported better-than-expected Q2 financial results.

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 A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Toll Brothers has a valuation score of 29, which is -3 points higher than the construction industry average of 32. It passed 2 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates TOL a Valuation Rating of "A".

Toll Brothers's stock has gained 9.26% in the past year. It has overperformed other stocks in the construction industry by 23 percentage points.

Legacy Housing (NASDAQ:LEGH) 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.

Legacy Housing 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.

Legacy Housing's stock has gained 32.91% in the past year. It has overperformed other stocks in the construction industry by 47 percentage points.

Kb Home (NYSE:KBH) is the third most undervalued construction stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Kb 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.

Kb Home's stock has dropped -23.15% in the past year. It has underperformed other stocks in the construction industry by -9 percentage points.

38.46% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 9.56% over the next year.

5.88% of construction stocks have a Zen Rating of A (Strong Buy), 0% of construction stocks are rated B (Buy), 64.71% are rated C (Hold), 23.53% are rated D (Sell), and 5.88% are rated F (Strong Sell).