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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:

Installed Building Products (NYSE:IBP) is the top construction stock with a Zen Score of 45, which is 7 points higher than the construction industry average of 38. It passed 17 out of 38 due diligence checks and has strong fundamentals. Installed Building Products has seen its stock return 92.06% over the past year, overperforming other construction stocks by 58 percentage points.

Installed Building Products has an average 1 year price target of $248.13, an upside of 14.36% from Installed Building Products's current stock price of $216.97.

Installed Building Products stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Installed Building Products, 50% have issued a Strong Buy rating, 12.5% have issued a Buy, 37.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Kb Home (NYSE:KBH) is the second best construction stock with a Zen Score of 44, which is 6 points higher than the construction industry average of 38. It passed 16 out of 38 due diligence checks and has strong fundamentals. Kb Home has seen its stock return 59.55% over the past year, overperforming other construction stocks by 26 percentage points.

Kb Home has an average 1 year price target of $70.63, a downside of -2.95% from Kb Home's current stock price of $72.77.

Kb Home stock has a consensus Hold recommendation according to Wall Street analysts. Of the 12 analysts covering Kb Home, 16.67% have issued a Strong Buy rating, 16.67% have issued a Buy, 50% have issued a hold, while 8.33% have issued a Sell rating, and 8.33% have issued a Strong Sell.

Taylor Morrison Home (NYSE:TMHC) 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 14 out of 33 due diligence checks and has strong fundamentals. Taylor Morrison Home has seen its stock return 36.68% over the past year, overperforming other construction stocks by 3 percentage points.

Taylor Morrison Home has an average 1 year price target of $60.25, an upside of 0.25% from Taylor Morrison Home's current stock price of $60.10.

Taylor Morrison Home stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Taylor Morrison Home, 25% have issued a Strong Buy rating, 25% have issued a Buy, 50% have issued a hold, while 0% 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 1.36%, which is the same as the construction industry average of 0.94%.

Installed Building Products's dividend payout ratio of 33.1% indicates that its dividend yield is sustainable for the long-term.

Kb Home (NYSE:KBH) has an annual dividend yield of 1.17%, which is the same as the construction industry average of 0.94%. 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.

Century Communities (NYSE:CCS) has an annual dividend yield of 1.09%, which is the same as the construction industry average of 0.94%.

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

Construction stocks were down -2.07% in the last day, and up 0.43% over the last week. Dream Finders Homes was the among the top losers in the residential construction industry, dropping -12.66% yesterday.

Shares of homebuilders and household durables stocks are trading lower following worse-than-expected April Housing Starts data.

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

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 22 points higher than the construction industry average of 49. It passed 5 out of 7 valuation due diligence checks.

Century Communities's stock has gained 30.08% in the past year. It has underperformed other stocks in the construction industry by -4 percentage points.

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 22 points higher than the construction industry average of 49. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has gained 100.73% in the past year. It has overperformed other stocks in the construction industry by 67 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 22 points higher than the construction industry average of 49. It passed 5 out of 7 valuation due diligence checks.

Beazer Homes Usa's stock has gained 34.41% in the past year. It has overperformed other stocks in the construction industry by 1 percentage points.