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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
Zen Score
Valuation Score
Financials Score
Forecast Score
Performance Score
Dividends Score
CVCO
CAVCO INDUSTRIES INC
50
43
86
33
40
KBH
KB HOME
48
71
43
56
30
40
MTH
MERITAGE HOMES CORP
48
71
57
22
30
60
TMHC
TAYLOR MORRISON HOME CORP
47
71
43
44
30
MDC
MDC HOLDINGS INC
44
71
43
44
0
60

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Use Zen Score to quickly analyze stock fundamentals, even if you don't have a finance background. We run time-tested due diligence checks inspired by legendary investors like Warren Buffett, and score each company based on how many they pass/fail.

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Construction Stocks FAQ

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

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

1. Cavco Industries (NASDAQ:CVCO)


Cavco Industries (NASDAQ:CVCO) is the top construction stock with a Zen Score of 50, which is 12 points higher than the construction industry average of 38. It passed 16 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 32.71% over the past year, underperforming other construction stocks by -19 percentage points.

Cavco Industries has an average 1 year price target of $380.00, a downside of -3.09% from Cavco Industries's current stock price of $392.11.

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.

2. Kb Home (NYSE:KBH)


Kb Home (NYSE:KBH) is the second best construction stock with a Zen Score of 48, which is 10 points higher than the construction industry average of 38. It passed 18 out of 38 due diligence checks and has strong fundamentals. Kb Home has seen its stock return 73.51% over the past year, overperforming other construction stocks by 22 percentage points.

Kb Home has an average 1 year price target of $67.88, a downside of -2.42% from Kb Home's current stock price of $69.56.

Kb Home stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Kb Home, 16.67% have issued a Strong Buy rating, 25% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 8.33% 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 48, which is 10 points higher than the construction industry average of 38. It passed 17 out of 38 due diligence checks and has strong fundamentals. Meritage Homes has seen its stock return 52.02% over the past year.

Meritage Homes has an average 1 year price target of $168.33, a downside of -2.49% from Meritage Homes's current stock price of $172.63.

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, 33.33% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the construction stocks with highest dividends?

Out of 9 construction stocks that have issued dividends in the past year, the 3 construction stocks with the highest dividend yields are:

1. Mdc Holdings (NYSE:MDC)


Mdc Holdings (NYSE:MDC) has an annual dividend yield of 3.42%, which is 2 percentage points higher than the construction industry average of 1.16%. Mdc Holdings's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Mdc Holdings's dividend has shown consistent growth over the last 10 years.

Mdc Holdings's dividend payout ratio of 38.7% indicates that its dividend yield is sustainable for the long-term.

2. Installed Building Products (NYSE:IBP)


Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.15%, which is the same as the construction industry average of 1.16%.

Installed Building Products's dividend payout ratio of 25.7% 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 1.08%, which is the same as the construction industry average of 1.16%. 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 9.7% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks up?

Construction stocks were up 1.6% in the last day, and up 0.72% 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 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 22 points higher than the construction industry average of 49. It passed 5 out of 7 valuation due diligence checks.

Century Communities's stock has gained 55.01% in the past year. It has overperformed other stocks in the construction industry by 3 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 22 points higher than the construction industry average of 49. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has gained 132.72% in the past year. It has overperformed other stocks in the construction industry by 81 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 22 points higher than the construction industry average of 49. It passed 5 out of 7 valuation due diligence checks.

Beazer Homes Usa's stock has gained 116.14% in the past year. It has overperformed other stocks in the construction industry by 64 percentage points.

Are construction stocks a good buy now?

63.16% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to fall by -5.95% 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 12.61x.
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.