Sectors & IndustriesConsumer CyclicalResidential Construction
Best Construction Stocks to Buy Now (2025)
Top construction stocks in 2025 ranked by overall Due Diligence Score. See the best construction stocks to buy now, according to analyst forecasts for the residential construction industry.

Industry: Residential Construction
Ticker
Company
Exchange
Industry
DD Score
Market Cap
Price
1d %
EBITDA
P/E
D/E
GRBK
GREEN BRICK PARTNERS INC
NYSE
Residential Construction
$2.66B$59.880.37%$448.82M7.71x0.38
IBP
INSTALLED BUILDING PRODUCTS INC
NYSE
Residential Construction
$5.38B$191.32-0.26%$513.60M21.14x1.89
PHM
PULTEGROUP INC
NYSE
Residential Construction
$22.27B$110.01-1.19%$4.10B7.42x0.43
TMHC
TAYLOR MORRISON HOME CORP
NYSE
Residential Construction
$6.68B$64.55-0.39%$1.12B8.38x0.63
LGIH
LGI HOMES INC
NASDAQ
Residential Construction
$2.01B$85.59-2.89%$263.29M10.18x0.92
LEGH
LEGACY HOUSING CORP
NASDAQ
Residential Construction
$636.81M$26.361.38%$71.93M11.82x0.09
CVCO
CAVCO INDUSTRIES INC
NASDAQ
Residential Construction
$4.30B$537.220.63%$230.71M26.17x0.31
HOV
HOVNANIAN ENTERPRISES INC
NYSE
Residential Construction
$812.64M$134.201.84%$355.57M3.90x2.26
CCS
CENTURY COMMUNITIES INC
NYSE
Residential Construction
$2.39B$77.060.30%$464.35M7.28x0.73
TOL
TOLL BROTHERS INC
NYSE
Residential Construction
$13.30B$132.97-1.47%$2.17B8.77x0.74
DHI
HORTON D R INC
NYSE
Residential Construction
$42.91B$136.17-1.98%$6.19B9.57x0.38
MHO
M/I HOMES INC
NYSE
Residential Construction
$3.27B$120.08-0.71%$708.02M6.24x0.57
LEN
LENNAR CORP
NYSE
Residential Construction
$33.79B$127.25-0.19%$5.27B8.89x0.48
KBH
KB HOME
NYSE
Residential Construction
$4.79B$66.42-1.32%$888.19M7.63x0.71
NVR
NVR INC
NYSE
Residential Construction
$23.71B$7,739.75-0.65%$2.07B14.88x0.52
DFH
DREAM FINDERS HOMES INC
NYSE
Residential Construction
$2.10B$22.44-0.71%$421.38M7.12x1.83
TPH
TRI POINTE HOMES INC
NYSE
Residential Construction
$3.42B$36.55-0.38%$651.01M7.55x0.47
MTH
MERITAGE HOMES CORP
NYSE
Residential Construction
$5.54B$76.58-0.76%$1.07B6.85x0.41
SKY
CHAMPION HOMES INC
NYSE
Residential Construction
$6.06B$105.830.53%$259.29M37.13x0.33
BZH
BEAZER HOMES USA INC
NYSE
Residential Construction
$703.94M$22.562.97%$156.03M5.68x1.11
ONEG
ONECONSTRUCTION GROUP LTD
NASDAQ
Residential Construction
N/A$2.350.00%$2.24M14.69x6.75
ECG
EVERUS CONSTRUCTION GROUP INC
NYSE
Residential Construction
$3.60B$70.722.37%N/AN/A1.82
UHG
UNITED HOMES GROUP INC
NASDAQ
Residential Construction
$202.83M$4.193.97%-$18.89M-7.10x13.28

Construction Stocks FAQ

What are the best construction stocks to buy right now in Feb 2025?

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

1. Green Brick Partners (NYSE:GRBK)


Green Brick Partners (NYSE:GRBK) is the top construction stock with a Due Diligence Score of 54, which is 19 points higher than the construction industry average of 35. It passed 18 out of 33 due diligence checks and has strong fundamentals. Green Brick Partners has seen its stock return 15.15% over the past year, overperforming other construction stocks by 9 percentage points.

2. Installed Building Products (NYSE:IBP)


Installed Building Products (NYSE:IBP) is the second best construction stock with a Due Diligence Score of 48, which is 13 points higher than the construction industry average of 35. It passed 19 out of 38 due diligence checks and has strong fundamentals. Installed Building Products has seen its stock lose -2.69% over the past year, underperforming other construction stocks by -9 percentage points.

Installed Building Products has an average 1 year price target of $241.67, an upside of 26.32% from Installed Building Products's current stock price of $191.32.

Installed Building Products stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Installed Building Products, 33.33% have issued a Strong Buy rating, 16.67% have issued a Buy, 33.33% have issued a hold, while 16.67% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Pultegroup (NYSE:PHM)


Pultegroup (NYSE:PHM) is the third best construction stock with a Due Diligence Score of 46, which is 11 points higher than the construction industry average of 35. It passed 17 out of 38 due diligence checks and has strong fundamentals. Pultegroup has seen its stock return 7.25% over the past year, overperforming other construction stocks by 1 percentage points.

Pultegroup has an average 1 year price target of $143.27, an upside of 30.24% from Pultegroup's current stock price of $110.01.

Pultegroup stock has a consensus Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Pultegroup, 45.45% have issued a Strong Buy rating, 27.27% have issued a Buy, 27.27% 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 7 construction stocks that have issued dividends in the past year, the 3 construction stocks with the highest dividend yields are:

1. Lennar (NYSE:LEN)


Lennar (NYSE:LEN) has an annual dividend yield of 1.57%, which is the same as the construction industry average of 1.09%. 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 10.5% 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 1.57%, which is the same as the construction industry average of 1.09%.

Installed Building Products's dividend payout ratio of 32.9% 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 1.13%, which is the same as the construction industry average of 1.09%. 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 10.9% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks down?

Construction stocks were down -0.53% in the last day, and down -4.02% over the last week.

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

What are the most undervalued construction stocks?

Based on WallStreetZen's Valuation Score, the 3 most undervalued construction stocks right now are:

1. Hovnanian Enterprises (NYSE:HOV)


Hovnanian Enterprises (NYSE:HOV) is the most undervalued construction stock based on WallStreetZen's Valuation Score. Hovnanian Enterprises has a valuation score of 71, which is 35 points higher than the construction industry average of 36. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has dropped -15.11% in the past year. It has underperformed other stocks in the construction industry by -21 percentage points.

2. Century Communities (NYSE:CCS)


Century Communities (NYSE:CCS) is the second most undervalued construction stock based on WallStreetZen's Valuation Score. Century Communities has a valuation score of 71, which is 35 points higher than the construction industry average of 36. It passed 5 out of 7 valuation due diligence checks.

Century Communities's stock has dropped -11.93% in the past year. It has underperformed other stocks in the construction industry by -18 percentage points.

3. Lgi Homes (NASDAQ:LGIH)


Lgi Homes (NASDAQ:LGIH) is the third most undervalued construction stock based on WallStreetZen's Valuation Score. Lgi Homes has a valuation score of 71, which is 35 points higher than the construction industry average of 36. It passed 5 out of 7 valuation due diligence checks.

Lgi Homes's stock has dropped -26.06% in the past year. It has underperformed other stocks in the construction industry by -32 percentage points.

Are construction stocks a good buy now?

60% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 20.01% 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 10.82x.
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.