Sectors & Industries Consumer CyclicalResidential Construction
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.

Industry: Residential Construction

Overview Zen Score Price Valuation Financials

Forecast Earnings & Revenue Dividends Ownership Technicals

Ticker	Company	Market Cap	ROE	ROA	ROCE	ROIC	D/E	Current Ratio	Gross Margin	Profit Margin	Operating Margin
MTH	MERITAGE HOMES CORP	$5.72B	17.00%	12.10%	N/A	15.40%	0.38	N/A	24.70%	12.00%	15.47%
LEN	LENNAR CORP	$43.34B	15.60%	10.70%	N/A	16.10%	0.46	N/A	17.30%	11.60%	15.20%
TMHC	TAYLOR MORRISON HOME CORP	$6.08B	15.10%	9.00%	N/A	10.80%	0.63	N/A	24.00%	10.40%	13.54%
CVCO	CAVCO INDUSTRIES INC	$3.13B	17.00%	12.80%	20.50%	37.50%	0.32	3.07	24.20%	9.20%	11.69%
KBH	KB HOME	$4.98B	15.80%	9.10%	N/A	10.20%	0.72	N/A	21.60%	9.30%	12.07%
LEGH	LEGACY HOUSING CORP	$489.25M	13.00%	11.30%	14.84%	15.40%	0.16	2.89	47.30%	28.80%	36.83%
GRBK	GREEN BRICK PARTNERS INC	$2.46B	23.60%	15.70%	N/A	19.00%	0.42	N/A	30.80%	16.00%	20.77%
LGIH	LGI HOMES INC	$2.27B	11.30%	6.10%	N/A	6.10%	0.84	N/A	23.00%	8.40%	11.10%
DHI	HORTON D R INC	$48.75B	21.70%	15.00%	N/A	18.60%	0.42	N/A	26.30%	13.40%	17.61%
HOV	HOVNANIAN ENTERPRISES INC	$915.87M	38.20%	8.30%	N/A	9.40%	2.86	N/A	22.50%	7.10%	11.28%
PHM	PULTEGROUP INC	$23.72B	26.80%	17.20%	N/A	22.10%	0.53	N/A	29.60%	16.60%	22.00%
IBP	INSTALLED BUILDING PRODUCTS INC	$6.75B	41.20%	13.00%	22.64%	24.20%	1.96	3.09	33.50%	8.80%	13.32%
TOL	TOLL BROTHERS INC	$12.45B	21.10%	11.50%	N/A	13.40%	0.78	N/A	26.90%	14.00%	18.69%
TPH	TRI POINTE HOMES INC	$3.50B	11.80%	7.10%	N/A	9.00%	0.63	N/A	23.30%	9.30%	12.43%
MHO	M/I HOMES INC	$3.32B	19.80%	11.90%	N/A	14.10%	0.60	N/A	25.30%	11.50%	14.56%
CCS	CENTURY COMMUNITIES INC	$2.66B	11.40%	6.60%	N/A	7.40%	0.73	N/A	21.70%	7.00%	9.50%
BZH	BEAZER HOMES USA INC	$879.47M	14.60%	6.60%	N/A	5.80%	1.13	N/A	20.20%	7.30%	8.24%
SKY	SKYLINE CHAMPION CORP	$4.48B	15.30%	12.00%	17.41%	59.10%	0.32	2.57	26.70%	10.20%	13.46%
DFH	DREAM FINDERS HOMES INC	$3.40B	32.50%	12.90%	N/A	14.90%	1.38	N/A	19.70%	8.20%	10.79%
NVR	NVR INC	$24.96B	38.50%	25.10%	N/A	45.00%	0.51	N/A	24.30%	17.10%	21.00%
UHG	UNITED HOMES GROUP INC	$307.16M	-104.90%	46.10%	N/A	38.40%	-10.58	N/A	18.90%	29.70%	30.37%

Construction Stocks FAQ

What are the best construction stocks to buy right now in Apr 2024?

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

1. Meritage Homes (NYSE:MTH)

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 23.7% over the past year, underperforming other construction stocks by -10 percentage points.

Meritage Homes has an average 1 year price target of $161.00, an upside of 1.78% from Meritage Homes's current stock price of $158.19.

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.

2. Lennar (NYSE:LEN)

Lennar (NYSE:LEN) is the second best construction stock with a Zen Score of 48, which is 10 points higher than the construction industry average of 38. It passed 16 out of 38 due diligence checks and has strong fundamentals. Lennar has seen its stock return 38.86% 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 9.68% from Lennar's current stock price of $155.70.

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.

3. Taylor Morrison Home (NYSE:TMHC)

Taylor Morrison Home (NYSE:TMHC) is the third best construction stock with a Zen Score of 47, which is 9 points higher than the construction industry average of 38. It passed 15 out of 33 due diligence checks and has strong fundamentals. Taylor Morrison Home has seen its stock return 43.07% over the past year, overperforming other construction stocks by 10 percentage points.

Taylor Morrison Home has an average 1 year price target of $56.00, a downside of -1.93% from Taylor Morrison Home's current stock price of $57.10.

Taylor Morrison Home stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Taylor Morrison Home, 20% have issued a Strong Buy rating, 40% have issued a Buy, 40% 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 8 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 1.36%, which is the same as the construction industry average of 1%. 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 11.4% 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 1.24%, which is the same as the construction industry average of 1%.

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 1.14%, which is the same as the construction industry average of 1%. 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.

Why are construction stocks up?

Construction stocks were up 1.26% in the last day, and up 2.82% over the last week. Installed Building Products was the among the top gainers in the residential construction industry, gaining 6.52% yesterday.

Shares of homebuilder and building product stocks are trading higher following strong earnings from PulteGroup and better-than-expected new home sales data.

What are the most undervalued construction stocks?

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

1. Century Communities (NYSE:CCS)

Century Communities (NYSE:CCS) is the 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 25.84% in the past year. It has underperformed other stocks in the construction industry by -7 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 21 points higher than the construction industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has gained 106.44% in the past year. It has overperformed other stocks in the construction industry by 73 percentage points.

3. Beazer Homes Usa (NYSE:BZH)

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 61.25% in the past year. It has overperformed other stocks in the construction industry by 28 percentage points.

Are construction stocks a good buy now?

55.56% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 3.78% 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 11.53x.

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.