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 19 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 52, which is 19 points higher than the construction industry average of 33.

LEGH passed 16 out of 33 due diligence checks and has strong fundamentals. Legacy Housing has seen its stock return 27.8% over the past year, overperforming other construction stocks by 35 percentage points.

Cavco Industries (NASDAQ:CVCO) is the #2 top construction stock out of 19 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: C, Momentum: C, Sentiment: B, 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 15% over the past year, overperforming other construction stocks by 23 percentage points.

Cavco Industries has an average 1 year price target of $735.00, an upside of 14.14% from Cavco Industries's current stock price of $643.97.

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.

Lgi Homes (NASDAQ:LGIH) is the #3 top construction stock out of 19 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 Lgi Homes (NASDAQ:LGIH) is: Value: C, Growth: C, Momentum: D, Sentiment: C, Safety: C, Financials: C, and AI: C.

Lgi Homes (NASDAQ:LGIH) has a Due Diligence Score of 20, which is -13 points lower than the construction industry average of 33.

LGIH passed 6 out of 33 due diligence checks and has weak fundamentals. Lgi Homes has seen its stock lose -3.04% over the past year, overperforming other construction stocks by 5 percentage points.

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 2.63%, which is 1 percentage points higher than the construction industry average of 1.62%. 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 2.19%, which is 1 percentage points higher than the construction industry average of 1.62%. 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 2.18%, which is 1 percentage points higher than the construction industry average of 1.62%. 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 down -0.4% in the last day, and up 7.43% over the last week.

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

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

Toll Brothers has a valuation score of 29, which is -1 points higher than the construction industry average of 30. 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 "B".

Toll Brothers's stock has gained 16.42% in the past year. It has overperformed other stocks in the construction industry by 24 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 27 points higher than the construction industry average of 30. It passed 4 out of 7 valuation due diligence checks.

Legacy Housing's stock has gained 27.8% in the past year. It has overperformed other stocks in the construction industry by 35 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 13 points higher than the construction industry average of 30. It passed 3 out of 7 valuation due diligence checks.

Kb Home's stock has dropped -13.92% in the past year. It has underperformed other stocks in the construction industry by -6 percentage points.

38.46% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 1.76% over the next year.

5.56% of construction stocks have a Zen Rating of A (Strong Buy), 0% of construction stocks are rated B (Buy), 61.11% are rated C (Hold), 16.67% are rated D (Sell), and 16.67% are rated F (Strong Sell).