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Best Construction Stocks to Buy Now (2025)
Top construction stocks in 2025 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.

Industry: Residential Construction

Growth Financials Momentum Sentiment Forecast Dividends Due Diligence

Construction is Zen Rated C and is the 82nd ranked industry out of 145 stock market industries

Ticker	Company	Price	Graham Fair Value	Graham Fair Value %	P/E	Forward P/E	P/S	P/B	PEG	Free Cash Flow	Free Cash Flow Yield	Book Value	BVPS	EV	EV/EBITDA
CVCO	CAVCO INDUSTRIES INC	$498.69	$212.03	135.20%	24.29x	20.09x	2.10x	3.78x	1.84x	$139.44M	3.45%	$1.06B	130.58	$3.65B	15.82
ECG	EVERUS CONSTRUCTION GROUP INC	$42.84	N/A	N/A	15.25x	17.20x	0.77x	5.17x	N/A	$128.81M	5.90%	$422.61M	8.29	$2.46B	10.60
LEGH	LEGACY HOUSING CORP	$24.30	$16.61	46.30%	9.53x	9.24x	3.19x	1.19x	3.75x	$28.35M	4.82%	$493.96M	20.40	$586.59M	7.46
UHG	UNITED HOMES GROUP INC	$1.91	$63.77	-97.00%	1.99x	N/A	0.20x	1.67x	0.01x	$15.52M	16.60%	$66.87M	1.37	$206.69M	5.30
SKY	CHAMPION HOMES INC	$87.21	$36.45	139.26%	30.60x	22.45x	2.06x	3.27x	1.52x	$149.35M	2.99%	$1.53B	26.68	$4.44B	17.12
LGPS	LOGPROSTYLE INC	$4.65	N/A	N/A	47.45x	N/A	1.08x	N/A	N/A	-$13.61M	-13.89%	$11.27M	0.54	N/A	N/A
HOV	HOVNANIAN ENTERPRISES INC	$96.44	N/A	N/A	2.74x	7.49x	0.20x	0.70x	N/A	$42.92M	6.83%	$811.43M	124.51	$1.61B	4.43
DFH	DREAM FINDERS HOMES INC	$22.09	N/A	N/A	6.42x	6.97x	0.46x	1.66x	N/A	-$281.96M	-13.65%	$1.24B	13.31	$3.03B	6.65
TMHC	TAYLOR MORRISON HOME CORP	$57.44	N/A	N/A	6.56x	6.66x	0.69x	0.97x	N/A	$382.32M	6.63%	$5.96B	59.36	$7.55B	6.06
IBP	INSTALLED BUILDING PRODUCTS INC	$166.56	$84.79	96.43%	18.18x	16.54x	1.59x	6.56x	1.78x	$254.30M	5.45%	$705.30M	25.16	$5.27B	10.19
GRBK	GREEN BRICK PARTNERS INC	$58.32	$54.80	6.43%	7.00x	6.77x	1.21x	1.52x	2.57x	$89.51M	3.45%	$1.69B	38.05	$2.72B	5.78
LEN	LENNAR CORP	$108.19	N/A	N/A	7.89x	10.66x	0.80x	1.26x	N/A	$1.65B	5.79%	$22.73B	86.16	$28.44B	5.66
MHO	M/I HOMES INC	$107.32	N/A	N/A	5.52x	6.31x	0.66x	0.96x	N/A	$119.37M	4.07%	$3.01B	110.07	$3.08B	4.48
TPH	TRI POINTE HOMES INC	$30.91	N/A	N/A	6.84x	10.05x	0.66x	0.84x	N/A	$495.89M	17.51%	$3.32B	36.25	$2.97B	4.92
BZH	BEAZER HOMES USA INC	$19.53	$23.28	-16.10%	6.26x	5.88x	0.24x	0.48x	1.21x	-$77.46M	-13.17%	$1.23B	40.77	$1.58B	12.64
PHM	PULTEGROUP INC	$101.89	N/A	N/A	7.13x	8.81x	1.15x	1.66x	N/A	$1.45B	7.05%	$12.30B	60.88	$21.20B	5.42
KBH	KB HOME	$53.74	N/A	N/A	6.39x	7.31x	0.56x	0.94x	N/A	-$41.19M	-1.07%	$4.09B	57.21	$5.38B	6.31
TOL	TOLL BROTHERS INC	$101.18	$86.78	16.60%	6.91x	7.36x	0.95x	1.29x	7.76x	$820.13M	8.04%	$7.80B	77.31	$12.23B	5.89
DHI	HORTON D R INC	$125.55	$81.65	53.76%	9.45x	10.88x	1.11x	1.59x	6.22x	$2.74B	6.98%	$24.33B	77.85	$42.57B	7.42
MTH	MERITAGE HOMES CORP	$66.95	$68.57	-2.36%	6.70x	7.80x	0.77x	0.93x	1.91x	-$379.86M	-7.89%	$5.19B	72.23	$5.63B	5.90
NVR	NVR INC	$7,034.89	N/A	N/A	13.01x	16.42x	2.13x	5.00x	N/A	$1.35B	6.16%	$4.21B	1,353.72	$19.39B	8.97
LGIH	LGI HOMES INC	$53.18	$63.59	-16.36%	6.84x	6.28x	0.58x	0.61x	0.95x	-$150.75M	-12.12%	$2.04B	87.30	$2.81B	11.48
CCS	CENTURY COMMUNITIES INC	$54.39	N/A	N/A	5.52x	6.76x	0.38x	0.64x	N/A	$33.51M	2.00%	$2.58B	83.72	$3.09B	7.14
ONEG	ONECONSTRUCTION GROUP LTD	$1.80	N/A	N/A	N/A	N/A	N/A	3.45x	N/A	N/A	N/A	$6.92M	0.52	$48.89M	N/A

Construction Stocks FAQ

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

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:

1. Cavco Industries (NASDAQ:CVCO)

Cavco Industries (NASDAQ:CVCO) is the #1 top construction stock out of 24 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 Cavco Industries (NASDAQ:CVCO) is: Value: D, Growth: B, Momentum: B, Sentiment: B, Safety: B, Financials: A, and AI: B.

Cavco Industries (NASDAQ:CVCO) has a Due Diligence Score of 44, which is 10 points higher than the construction industry average of 34.

CVCO passed 14 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 36.63% over the past year, overperforming other construction stocks by 43 percentage points.

Cavco Industries has an average 1 year price target of $487.50, a downside of -2.24% from Cavco Industries's current stock price of $498.69.

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, 50% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Everus Construction Group (NYSE:ECG)

Everus Construction Group (NYSE:ECG) is the #2 top construction stock out of 24 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: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

Everus Construction Group (NYSE:ECG) has a Due Diligence Score of 45, which is 11 points higher than the construction industry average of 34.

ECG passed 15 out of 33 due diligence checks and has strong fundamentals.

Everus Construction Group has an average 1 year price target of $67.50, an upside of 57.56% from Everus Construction Group's current stock price of $42.84.

Everus Construction Group stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Everus Construction Group, 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.

3. Legacy Housing (NASDAQ:LEGH)

Legacy Housing (NASDAQ:LEGH) is the #3 top construction stock out of 24 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 Legacy Housing (NASDAQ:LEGH) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: C.

Legacy Housing (NASDAQ:LEGH) has a Due Diligence Score of 44, which is 10 points higher than the construction industry average of 34.

LEGH passed 13 out of 33 due diligence checks and has strong fundamentals. Legacy Housing has seen its stock return 18.02% over the past year, overperforming other construction stocks by 25 percentage points.

What are the construction stocks with highest dividends?

Out of 8 construction stocks that have issued dividends in the past year, the 3 construction stocks with the highest dividend yields are:

1. Installed Building Products (NYSE:IBP)

Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.87%, which is the same as the construction industry average of 1.4%. Installed Building Products's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Installed Building Products's dividend has shown consistent growth over the last 10 years.

Installed Building Products's dividend payout ratio of 32.8% indicates that its dividend yield is sustainable for the long-term.

2. Kb Home (NYSE:KBH)

Kb Home (NYSE:KBH) has an annual dividend yield of 1.86%, which is the same as the construction industry average of 1.4%. 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 11.9% indicates that its dividend yield is sustainable for the long-term.

3. Lennar (NYSE:LEN)

Lennar (NYSE:LEN) has an annual dividend yield of 1.85%, which is the same as the construction industry average of 1.4%. 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 14.6% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks down?

Construction stocks were down -0.96% in the last day, and down -1.32% 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 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:

1. United Homes Group (NASDAQ:UHG)

United Homes Group (NASDAQ:UHG) is the most undervalued construction stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

United Homes Group has a valuation score of 57, which is 23 points higher than the construction industry average of 34. It passed 4 out of 7 valuation due diligence checks.

United Homes Group's stock has dropped -72.08% in the past year. It has underperformed other stocks in the construction industry by -66 percentage points.

2. Taylor Morrison Home (NYSE:TMHC)

Taylor Morrison Home (NYSE:TMHC) 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.

Taylor Morrison Home has a valuation score of 43, which is 9 points higher than the construction industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Taylor Morrison Home's stock has gained 2.46% in the past year. It has overperformed other stocks in the construction industry by 9 percentage points.

3. Toll Brothers (NYSE:TOL)

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 9 points higher than the construction industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Toll Brothers's stock has dropped -15.34% in the past year. It has underperformed other stocks in the construction industry by -9 percentage points.

Are construction stocks a good buy now?

47.37% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 19.08% over the next year.

0% of construction stocks have a Zen Rating of A (Strong Buy), 13.04% of construction stocks are rated B (Buy), 65.22% are rated C (Hold), 21.74% are rated D (Sell), and 0% are rated F (Strong Sell).

What is the average p/e ratio of the residential construction industry?

The average P/E ratio of the residential construction industry is 9.97x.

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.