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 +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:

Everus Construction Group (NYSE:ECG) is the #1 top construction stock out of 23 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: B, Sentiment: A, Safety: C, Financials: B, and AI: C.

Everus Construction Group (NYSE:ECG) has a Due Diligence Score of 47, which is 16 points higher than the construction industry average of 31.

ECG passed 16 out of 33 due diligence checks and has strong fundamentals. Everus Construction Group has seen its stock return 176% over the past year, overperforming other construction stocks by 186 percentage points.

Everus Construction Group has an average 1 year price target of $111.33, an upside of 0.35% from Everus Construction Group's current stock price of $110.95.

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

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

Installed Building Products (NYSE:IBP) has a Due Diligence Score of 53, which is 22 points higher than the construction industry average of 31.

IBP passed 20 out of 38 due diligence checks and has strong fundamentals. Installed Building Products has seen its stock return 47.97% over the past year, overperforming other construction stocks by 58 percentage points.

Installed Building Products has an average 1 year price target of $282.50, an upside of 9.16% from Installed Building Products's current stock price of $258.79.

Installed Building Products stock has a consensus Sell recommendation according to Wall Street analysts. Of the 6 analysts covering Installed Building Products, 0% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 16.67% have issued a Sell rating, and 16.67% have issued a Strong Sell.

Toll Brothers (NYSE:TOL) 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 Toll Brothers (NYSE:TOL) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: D, Financials: C, and AI: C.

Toll Brothers (NYSE:TOL) has a Due Diligence Score of 38, which is 7 points higher than the construction industry average of 31.

TOL passed 13 out of 38 due diligence checks and has average fundamentals. Toll Brothers has seen its stock return 23.17% over the past year, overperforming other construction stocks by 33 percentage points.

Toll Brothers has an average 1 year price target of $163.67, an upside of 23.99% from Toll Brothers's current stock price of $132.00.

Toll Brothers stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Toll Brothers, 33.33% have issued a Strong Buy rating, 25% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 8.33% 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 2.28%, which is 1 percentage points higher than the construction industry average of 1.53%. 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 26.9% indicates that its dividend yield is sustainable for the long-term.

Lennar (NYSE:LEN) has an annual dividend yield of 2.21%, which is 1 percentage points higher than the construction industry average of 1.53%. 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 25.1% indicates that its dividend yield is sustainable for the long-term.

Kb Home (NYSE:KBH) has an annual dividend yield of 1.96%, which is the same as the construction industry average of 1.53%. 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 15.9% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were down -1.33% in the last day, and down -2.59% over the last week. Installed Building Products was the among the top losers in the residential construction industry, dropping -5.1% yesterday.

Shares of homebuilders and housing-related stocks are trading lower as Treasury yields climb, driven by rising oil prices amid the ongoing Middle East conflict. The increase in energy prices is fueling inflation concerns, which could lead to higher borrowing costs and weigh on housing affordability and demand.

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:

M/I Homes (NYSE:MHO) is the 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 gained 2.25% in the past year. It has overperformed other stocks in the construction industry by 12 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 43, which is 11 points higher than the construction industry average of 32. It passed 3 out of 7 valuation due diligence checks.

Legacy Housing's stock has dropped -27.42% in the past year. It has underperformed other stocks in the construction industry by -17 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 11 points higher than the construction industry average of 32. It passed 3 out of 7 valuation due diligence checks.

Toll Brothers's stock has gained 23.17% in the past year. It has overperformed other stocks in the construction industry by 33 percentage points.

35.29% of construction stocks rated by analysts are a hold right now. On average, analysts expect construction stocks to rise by 28.65% over the next year.

0% of construction stocks have a Zen Rating of A (Strong Buy), 10% of construction stocks are rated B (Buy), 70% are rated C (Hold), 20% are rated D (Sell), and 0% are rated F (Strong Sell).