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Best Construction Stocks to Buy Now (2023)
Top construction stocks in 2023 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

Zen Score Price Valuation Financials Forecast Earnings & Revenue Dividends Ownership Technicals

Ticker	Company	Exchange	Industry	Market Cap	Price	1d %	EBITDA	P/E	D/E
CVCO	CAVCO INDUSTRIES INC	NASDAQ	Residential Construction	$2.28B	$262.65	-1.13%	$306.42M	10.16x	0.32
KBH	KB HOME	NYSE	Residential Construction	$3.70B	$45.87	-0.89%	$1.02B	5.12x	0.72
LEGH	LEGACY HOUSING CORP	NASDAQ	Residential Construction	$463.93M	$19.02	-2.01%	$81.59M	7.04x	0.13
PHM	PULTEGROUP INC	NYSE	Residential Construction	$16.07B	$73.22	-1.12%	$3.71B	6.06x	0.57
CCS	CENTURY COMMUNITIES INC	NYSE	Residential Construction	$2.11B	$65.89	-1.33%	$400.02M	6.80x	0.74
MDC	MDC HOLDINGS INC	NYSE	Residential Construction	$3.06B	$41.04	-0.46%	$546.33M	7.46x	0.68
LGIH	LGI HOMES INC	NASDAQ	Residential Construction	$2.35B	$99.79	0.30%	$261.14M	11.38x	0.81
IBP	INSTALLED BUILDING PRODUCTS INC	NYSE	Residential Construction	$3.49B	$122.94	-1.56%	$487.41M	14.45x	2.28
LEN	LENNAR CORP	NYSE	Residential Construction	$31.61B	$111.15	-0.96%	$5.25B	8.24x	0.45
DHI	HORTON D R INC	NYSE	Residential Construction	$35.92B	$106.18	-1.20%	$6.40B	7.50x	0.47
TOL	TOLL BROTHERS INC	NYSE	Residential Construction	$7.84B	$72.99	-1.31%	$2.16B	5.24x	0.84
MHO	M/I HOMES INC	NYSE	Residential Construction	$2.32B	$83.32	-0.86%	$631.71M	4.77x	0.68
MTH	MERITAGE HOMES CORP	NYSE	Residential Construction	$4.43B	$120.63	-1.44%	$1.10B	5.24x	0.43
TMHC	TAYLOR MORRISON HOME CORP	NYSE	Residential Construction	$4.64B	$42.41	-0.47%	$1.36B	4.61x	0.72
DFH	DREAM FINDERS HOMES INC	NYSE	Residential Construction	$2.04B	$21.94	-1.30%	$387.79M	7.86x	1.51
GRBK	GREEN BRICK PARTNERS INC	NYSE	Residential Construction	$1.86B	$40.95	-1.35%	$347.28M	7.05x	0.47
NVR	NVR INC	NYSE	Residential Construction	$19.46B	$5,960.95	-0.04%	$2.06B	11.98x	0.51
HOV	HOVNANIAN ENTERPRISES INC	NYSE	Residential Construction	$622.46M	$102.13	0.46%	$289.71M	4.40x	3.96
SKY	SKYLINE CHAMPION CORP	NYSE	Residential Construction	$3.58B	$62.68	-1.63%	$467.42M	10.64x	0.25
BZH	BEAZER HOMES USA INC	NYSE	Residential Construction	$779.09M	$24.86	-0.20%	$241.45M	3.98x	1.22
UHG	UNITED HOMES GROUP INC	NASDAQ	Residential Construction	$252.90M	$5.23	-6.61%	$105.09M	0.01x	-3.11
TPH	TRI POINTE HOMES INC	NYSE	Residential Construction	$2.68B	$27.09	-0.95%	$680.30M	5.62x	0.65

Construction Stocks FAQ

What are the best construction stocks to buy right now in Oct 2023?

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 57, which is 16 points higher than the construction industry average of 41. It passed 19 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 22.41% over the past year, underperforming other construction stocks by -23 percentage points.

Cavco Industries has an average 1 year price target of $381.50, an upside of 45.25% from Cavco Industries's current stock price of $262.65.

Cavco Industries stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts 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 55, which is 14 points higher than the construction industry average of 41. It passed 21 out of 38 due diligence checks and has strong fundamentals. Kb Home has seen its stock return 67.96% over the past year, overperforming other construction stocks by 23 percentage points.

Kb Home has an average 1 year price target of $57.50, an upside of 25.35% from Kb Home's current stock price of $45.87.

Kb Home stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Kb Home, 37.5% have issued a Strong Buy rating, 25% have issued a Buy, 37.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Legacy Housing (NASDAQ:LEGH)

Legacy Housing (NASDAQ:LEGH) is the third best construction stock with a Zen Score of 53, which is 12 points higher than the construction industry average of 41. It passed 16 out of 33 due diligence checks and has strong fundamentals. Legacy Housing has seen its stock return 7.09% over the past year, underperforming other construction stocks by -38 percentage points.

Legacy Housing has an average 1 year price target of $30.00, an upside of 57.73% from Legacy Housing's current stock price of $19.02.

Legacy Housing stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Legacy Housing, 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.

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 5%, which is 3 percentage points higher than the construction industry average of 1.61%. 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 36.4% 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 1.79%, which is the same as the construction industry average of 1.61%.

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 1.42%, which is the same as the construction industry average of 1.61%. 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 6.7% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks down?

Construction stocks were down -0.24% in the last day, and down -0.43% 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. Legacy Housing (NASDAQ:LEGH)

Legacy Housing (NASDAQ:LEGH) is the most undervalued construction stock based on WallStreetZen's Valuation Score. Legacy Housing has a valuation score of 86, which is 39 points higher than the construction industry average of 47. It passed 6 out of 7 valuation due diligence checks.

Legacy Housing's stock has gained 7.09% in the past year. It has underperformed other stocks in the construction industry by -38 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 24 points higher than the construction industry average of 47. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has gained 174.25% in the past year. It has overperformed other stocks in the construction industry by 129 percentage points.

3. Century Communities (NYSE:CCS)

Century Communities (NYSE:CCS) is the third most undervalued construction stock based on WallStreetZen's Valuation Score. Century Communities has a valuation score of 71, which is 24 points higher than the construction industry average of 47. It passed 5 out of 7 valuation due diligence checks.

Century Communities's stock has gained 48.7% in the past year. It has overperformed other stocks in the construction industry by 3 percentage points.

Are construction stocks a good buy now?

50% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to fall by -14.34% 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 7.95x.

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.