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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.

Industry: Residential Construction
Ticker
Company
Forecast Score
Market Cap
Price
Price Target
Upside/Downside
Top Analysts Upside/Downside
Consensus
Top Analysts Consensus
Analysts
Top Analysts
Fore. Revenue Growth
Fore. Earnings Growth
Forecast ROE
Forecast ROA
LEGH
LEGACY HOUSING CORP
$621.75M$25.49N/AN/AN/AN/A7.58%N/AN/AN/A
KBH
KB HOME
$4.83B$63.65$63.900.39%Buy106.87%60.73%N/AN/A
CVCO
CAVCO INDUSTRIES INC
$3.05B$365.80$380.003.88%Buy14.19%20.22%N/AN/A
TMHC
TAYLOR MORRISON HOME CORP
$6.01B$56.48$56.00-0.85%Buy51.65%39.36%N/AN/A
LEN
LENNAR CORP
$43.55B$155.08$146.58-5.48%Buy124.83%27.13%N/AN/A
MDC
MDC HOLDINGS INC
$4.67B$62.50$51.63-17.40%Hold47.09%35.98%N/AN/A
MTH
MERITAGE HOMES CORP
$5.68B$156.92$168.337.27%Hold33.23%11.06%N/AN/A
IBP
INSTALLED BUILDING PRODUCTS INC
$6.64B$234.09$210.33-10.15%Buy65.16%N/AN/AN/A
DHI
HORTON D R INC
$48.48B$146.10$150.783.20%Buy95.78%1.08%N/AN/A
HOV
HOVNANIAN ENTERPRISES INC
$873.61M$143.33N/AN/AN/AN/AN/AN/AN/AN/A
TPH
TRI POINTE HOMES INC
$3.40B$35.59$38.006.77%Hold312.48%27.31%N/AN/A
PHM
PULTEGROUP INC
$22.43B$105.74$107.892.03%Buy95.57%-1.88%N/AN/A
GRBK
GREEN BRICK PARTNERS INC
$2.59B$57.18N/AN/AN/AN/A10.07%-3.61%N/AN/A
TOL
TOLL BROTHERS INC
$11.59B$111.30$110.64-0.60%Buy111.56%-11.40%N/AN/A
MHO
M/I HOMES INC
$3.37B$121.28$116.00-4.35%Hold12.63%7.10%N/AN/A
SKY
SKYLINE CHAMPION CORP
$4.79B$83.00$71.33-14.06%Hold37.20%23.40%N/AN/A
LGIH
LGI HOMES INC
$2.67B$113.40$124.009.35%Buy216.62%110.26%N/AN/A
CCS
CENTURY COMMUNITIES INC
$2.77B$87.06$101.0016.01%Buy211.06%151.35%N/AN/A
BZH
BEAZER HOMES USA INC
$928.68M$29.44$33.0012.09%Hold112.15%16.76%N/AN/A
DFH
DREAM FINDERS HOMES INC
$3.30B$35.40$19.00-46.33%Hold1-3.96%6.62%N/AN/A
NVR
NVR INC
$24.17B$7,584.75N/AN/AN/AN/A5.76%N/AN/AN/A
UHG
UNITED HOMES GROUP INC
$343.81M$7.11N/AN/AN/AN/AN/AN/AN/AN/A

Construction Stocks FAQ

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

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

1. Legacy Housing (NASDAQ:LEGH)


Legacy Housing (NASDAQ:LEGH) is the top construction stock with a Zen Score of 55, which is 16 points higher than the construction industry average of 39. It passed 17 out of 33 due diligence checks and has strong fundamentals. Legacy Housing has seen its stock return 29.98% over the past year, underperforming other construction stocks by -20 percentage points.

2. Cavco Industries (NASDAQ:CVCO)


Cavco Industries (NASDAQ:CVCO) is the second best construction stock with a Zen Score of 48, which is 9 points higher than the construction industry average of 39. It passed 15 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 30.83% over the past year, underperforming other construction stocks by -19 percentage points.

Cavco Industries has an average 1 year price target of $380.00, an upside of 3.88% from Cavco Industries's current stock price of $365.80.

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.

3. Kb Home (NYSE:KBH)


Kb Home (NYSE:KBH) is the third best construction stock with a Zen Score of 48, which is 9 points higher than the construction industry average of 39. It passed 18 out of 38 due diligence checks and has strong fundamentals. Kb Home has seen its stock return 79.19% over the past year, overperforming other construction stocks by 29 percentage points.

Kb Home has an average 1 year price target of $63.90, an upside of 0.39% from Kb Home's current stock price of $63.65.

Kb Home stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Kb Home, 20% have issued a Strong Buy rating, 30% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 10% 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 3.44%, which is 2 percentage points higher than the construction industry average of 1.17%. 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 38.7% 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 1.18%, which is the same as the construction industry average of 1.17%. 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 9.7% indicates that its dividend yield is sustainable for the long-term.

3. Century Communities (NYSE:CCS)


Century Communities (NYSE:CCS) has an annual dividend yield of 1.06%, which is the same as the construction industry average of 1.17%.

Century Communities's dividend payout ratio of 11.3% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks up?

Construction stocks were up 0.72% in the last day, and up 2.44% over the last week.

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

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 45.22% in the past year. It has underperformed other stocks in the construction industry by -5 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 115.15% in the past year. It has overperformed other stocks in the construction industry by 65 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 96.27% in the past year. It has overperformed other stocks in the construction industry by 46 percentage points.

Are construction stocks a good buy now?

58.82% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to fall by -0.8% 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 11.7x.
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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.