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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

Overview Zen Rating Price Value Growth Financials Momentum Sentiment Forecast

Construction is Zen Rated B and is the ranked industry out of 145 stock market industries

Ticker	Company	Market Cap	Price	Price Target	Upside/Downside	Consensus	Analysts	Fore. Revenue Growth	Fore. Earnings Growth	Forecast ROE	Forecast ROA
ECG	EVERUS CONSTRUCTION GROUP INC	$1.94B	$38.05	$73.50	93.17%	Strong Buy	2	6.91%	-11.39%	33.43%	10.96%
MHO	M/I HOMES INC	$3.18B	$117.22	$168.00	43.32%	Strong Buy	3	3.61%	-9.14%	18.82%	12.16%
TMHC	TAYLOR MORRISON HOME CORP	$5.97B	$58.69	$79.43	35.34%	Strong Buy	7	3.31%	6.92%	17.38%	10.96%
PHM	PULTEGROUP INC	$20.84B	$102.94	$139.67	35.68%	Buy	12	3.20%	-4.18%	25.24%	17.62%
IBP	INSTALLED BUILDING PRODUCTS INC	$4.75B	$171.21	$224.44	31.09%	Buy	9	2.23%	19.76%	48.29%	16.53%
DHI	HORTON D R INC	$39.95B	$126.78	$175.50	38.43%	Buy	12	4.05%	4.21%	24.53%	17.47%
MTH	MERITAGE HOMES CORP	$5.05B	$70.42	$85.45	21.34%	Buy	5	8.18%	4.72%	18.89%	13.56%
TPH	TRI POINTE HOMES INC	$2.90B	$31.54	$43.00	36.33%	Buy	5	-15.21%	-36.34%	8.34%	5.68%
TOL	TOLL BROTHERS INC	$10.43B	$104.89	$148.42	41.50%	Buy	12	3.56%	1.48%	21.11%	12.08%
NVR	NVR INC	$21.64B	$7,236.53	$9.36k	29.30%	Buy	3	3.03%	2.51%	46.10%	30.42%
CCS	CENTURY COMMUNITIES INC	$2.11B	$68.07	$104.00	52.78%	Buy	3	11.22%	4.53%	13.73%	7.94%
CVCO	CAVCO INDUSTRIES INC	$4.06B	$506.83	$487.50	-3.81%	Buy	2	6.64%	9.43%	20.46%	15.61%
LEN	LENNAR CORP	$31.36B	$118.10	$161.39	36.65%	Hold	13	6.42%	2.68%	15.36%	10.36%
SKY	CHAMPION HOMES INC	$5.41B	$94.45	$96.75	2.44%	Hold	4	4.65%	17.38%	15.98%	11.99%
KBH	KB HOME	$4.38B	$60.64	$76.04	25.40%	Hold	12	4.31%	3.86%	19.90%	11.65%
HOV	HOVNANIAN ENTERPRISES INC	$641.22M	$108.23	$155.00	43.21%	Hold	1	-4.42%	-63.40%	10.23%	3.28%
DFH	DREAM FINDERS HOMES INC	$2.26B	$24.23	$32.00	32.07%	Hold	1	8.24%	-8.87%	28.22%	10.55%
LGIH	LGI HOMES INC	$1.68B	$71.86	$115.00	60.03%	Hold	3	17.96%	7.80%	11.64%	6.31%
ONEG	ONECONSTRUCTION GROUP LTD	N/A	$2.16	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
UHG	UNITED HOMES GROUP INC	$196.90M	$3.36	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
LEGH	LEGACY HOUSING CORP	$626.40M	$25.96	N/A	N/A	N/A	N/A	1.85%	3.14%	13.34%	12.33%
GRBK	GREEN BRICK PARTNERS INC	$2.58B	$58.02	N/A	N/A	N/A	N/A	8.61%	1.18%	25.93%	18.73%
BZH	BEAZER HOMES USA INC	$667.75M	$21.40	N/A	N/A	N/A	N/A	7.15%	-12.22%	13.21%	6.27%

Construction Stocks FAQ

What are the best construction stocks to buy right now in Mar 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 23 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Cavco Industries (NASDAQ:CVCO) is: Value: D, Growth: B, Momentum: C, Sentiment: A, Safety: B, Financials: A, and AI: A.

Cavco Industries (NASDAQ:CVCO) has a Due Diligence Score of 44, which is 8 points higher than the construction industry average of 36.

CVCO passed 14 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 38.59% 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 -3.81% from Cavco Industries's current stock price of $506.83.

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 23 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 42, which is 6 points higher than the construction industry average of 36.

ECG passed 14 out of 33 due diligence checks and has strong fundamentals.

Everus Construction Group has an average 1 year price target of $73.50, an upside of 93.17% from Everus Construction Group's current stock price of $38.05.

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. Taylor Morrison Home (NYSE:TMHC)

Taylor Morrison Home (NYSE:TMHC) is the #3 top construction stock out of 23 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 Taylor Morrison Home (NYSE:TMHC) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: B.

Taylor Morrison Home (NYSE:TMHC) has a Due Diligence Score of 41, which is 5 points higher than the construction industry average of 36.

TMHC passed 13 out of 33 due diligence checks and has strong fundamentals. Taylor Morrison Home has seen its stock return 3.36% over the past year, overperforming other construction stocks by 8 percentage points.

Taylor Morrison Home has an average 1 year price target of $79.43, an upside of 35.34% from Taylor Morrison Home's current stock price of $58.69.

Taylor Morrison Home stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Taylor Morrison Home, 42.86% have issued a Strong Buy rating, 42.86% have issued a Buy, 14.29% 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 6 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 1.69%, which is 1 percentage points higher than the construction industry average of 1.07%. 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 10.5% 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 1.65%, which is 1 percentage points higher than the construction industry average of 1.07%. 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 10.9% 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 1.19%, which is the same as the construction industry average of 1.07%.

Century Communities's dividend payout ratio of 9.8% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks up?

Construction stocks were up 1.65% in the last day, and down -2.49% 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 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. M/I Homes (NYSE:MHO)

M/I Homes (NYSE:MHO) is the 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.

M/I Homes has a valuation score of 43, which is 7 points higher than the construction industry average of 36. It passed 3 out of 7 valuation due diligence checks.

M/I Homes's stock has dropped -4.48% in the past year. It has performed in line with other stocks in the construction industry.

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 57, which is 21 points higher than the construction industry average of 36. It passed 4 out of 7 valuation due diligence checks.

Taylor Morrison Home's stock has gained 3.36% in the past year. It has overperformed other stocks in the construction industry by 8 percentage points.

3. Kb Home (NYSE:KBH)

Kb Home (NYSE:KBH) 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.

Kb Home has a valuation score of 43, which is 7 points higher than the construction industry average of 36. It passed 3 out of 7 valuation due diligence checks.

Kb Home's stock has dropped -9.34% in the past year. It has underperformed other stocks in the construction industry by -5 percentage points.

Are construction stocks a good buy now?

50% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 28.66% over the next year.

4.55% of construction stocks have a Zen Rating of A (Strong Buy), 18.18% of construction stocks are rated B (Buy), 68.18% are rated C (Hold), 9.09% 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 10.05x.

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.