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Best Construction Stocks to Buy Now (2024)

Top construction stocks in 2024 ranked by overall Zen Score. See the best construction stocks to buy now, according to analyst forecasts for the residential construction industry.

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

Meritage Homes (NYSE:MTH) is the top construction stock with a Zen Score of 50, which is 12 points higher than the construction industry average of 38. It passed 18 out of 38 due diligence checks and has strong fundamentals. Meritage Homes has seen its stock return 31.7% over the past year, overperforming other construction stocks by 3 percentage points.

Meritage Homes has an average 1 year price target of $161.00, a downside of -2.86% from Meritage Homes's current stock price of $165.74.

Meritage Homes stock has a consensus Hold recommendation according to Wall Street analysts. Of the 3 analysts covering Meritage Homes, 0% have issued a Strong Buy rating, 33.33% have issued a Buy, 33.33% have issued a hold, while 33.33% have issued a Sell rating, and 0% have issued a Strong Sell.

Cavco Industries (NASDAQ:CVCO) is the second best construction stock with a Zen Score of 45, which is 7 points higher than the construction industry average of 38. It passed 14 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 21.65% over the past year, underperforming other construction stocks by -7 percentage points.

Cavco Industries has an average 1 year price target of $380.00, an upside of 4.34% from Cavco Industries's current stock price of $364.21.

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.

Lennar (NYSE:LEN) is the third best construction stock with a Zen Score of 44, which is 6 points higher than the construction industry average of 38. It passed 15 out of 38 due diligence checks and has strong fundamentals. Lennar has seen its stock return 34.91% over the past year, overperforming other construction stocks by 6 percentage points.

Lennar has an average 1 year price target of $170.77, an upside of 12.63% from Lennar's current stock price of $151.62.

Lennar stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Lennar, 38.46% have issued a Strong Buy rating, 30.77% have issued a Buy, 15.38% have issued a hold, while 15.38% have issued a Sell rating, and 0% 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:

Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.25%, which is the same as the construction industry average of 0.98%.

Installed Building Products's dividend payout ratio of 25.7% indicates that its dividend yield is sustainable for the long-term.

Century Communities (NYSE:CCS) has an annual dividend yield of 1.2%, which is the same as the construction industry average of 0.98%.

Century Communities's dividend payout ratio of 10.4% indicates that its dividend yield is sustainable for the long-term.

Kb Home (NYSE:KBH) has an annual dividend yield of 1.16%, which is the same as the construction industry average of 0.98%. 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 9.9% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were down -1.67% in the last day, and down -4.36% over the last week.

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

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

Tri Pointe Homes (NYSE:TPH) is the most undervalued construction stock based on WallStreetZen's Valuation Score. Tri Pointe Homes has a valuation score of 71, which is 21 points higher than the construction industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Tri Pointe Homes's stock has gained 30.21% in the past year. It has overperformed other stocks in the construction industry by 1 percentage points.

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 21 points higher than the construction industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Century Communities's stock has gained 20.4% in the past year. It has underperformed other stocks in the construction industry by -9 percentage points.

Beazer Homes Usa (NYSE:BZH) is the third most undervalued construction stock based on WallStreetZen's Valuation Score. Beazer Homes Usa has a valuation score of 71, which is 21 points higher than the construction industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Beazer Homes Usa's stock has gained 44.86% in the past year. It has overperformed other stocks in the construction industry by 16 percentage points.