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Best Construction Stocks to Buy Now (2024)

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

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

Green Brick Partners (NYSE:GRBK) is the top construction stock with a Due Diligence Score of 50, which is 14 points higher than the construction industry average of 36. It passed 17 out of 33 due diligence checks and has strong fundamentals. Green Brick Partners has seen its stock return 36.69% over the past year, underperforming other construction stocks by -4 percentage points.

Green Brick Partners has an average 1 year price target of $78.00, an upside of 14.77% from Green Brick Partners's current stock price of $67.96.

Green Brick Partners stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Green Brick Partners, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Horton D R (NYSE:DHI) is the second best construction stock with a Due Diligence Score of 48, which is 12 points higher than the construction industry average of 36. It passed 18 out of 38 due diligence checks and has strong fundamentals. Horton D R has seen its stock return 22.14% over the past year, underperforming other construction stocks by -18 percentage points.

Horton D R has an average 1 year price target of $194.27, an upside of 21.66% from Horton D R's current stock price of $159.68.

Horton D R stock has a consensus Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Horton D R, 45.45% have issued a Strong Buy rating, 27.27% have issued a Buy, 18.18% have issued a hold, while 9.09% have issued a Sell rating, and 0% have issued a Strong Sell.

Kb Home (NYSE:KBH) is the third best construction stock with a Due Diligence Score of 45, which is 9 points higher than the construction industry average of 36. It passed 16 out of 38 due diligence checks and has strong fundamentals. Kb Home has seen its stock return 43.96% over the past year, overperforming other construction stocks by 3 percentage points.

Kb Home has an average 1 year price target of $81.11, an upside of 3.5% from Kb Home's current stock price of $78.37.

Kb Home stock has a consensus Hold recommendation according to Wall Street analysts. Of the 9 analysts covering Kb Home, 11.11% have issued a Strong Buy rating, 11.11% have issued a Buy, 44.44% have issued a hold, while 22.22% have issued a Sell rating, and 11.11% 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:

Meritage Homes (NYSE:MTH) has an annual dividend yield of 1.4%, which is the same as the construction industry average of 1.02%. Meritage Homes's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Meritage Homes's dividend has shown consistent growth over the last 10 years.

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

Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.4%, which is the same as the construction industry average of 1.02%.

Installed Building Products's dividend payout ratio of 32.9% indicates that its dividend yield is sustainable for the long-term.

Kb Home (NYSE:KBH) has an annual dividend yield of 1.21%, which is the same as the construction industry average of 1.02%. 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 11.2% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were down -1.29% in the last day, and down -3.42% 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:

Hovnanian Enterprises (NYSE:HOV) is the most undervalued construction stock based on WallStreetZen's Valuation Score. Hovnanian Enterprises has a valuation score of 71, which is 34 points higher than the construction industry average of 37. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has gained 64.61% in the past year. It has overperformed other stocks in the construction industry by 24 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 34 points higher than the construction industry average of 37. It passed 5 out of 7 valuation due diligence checks.

Century Communities's stock has gained 16.07% in the past year. It has underperformed other stocks in the construction industry by -25 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 34 points higher than the construction industry average of 37. It passed 5 out of 7 valuation due diligence checks.

Beazer Homes Usa's stock has gained 19.03% in the past year. It has underperformed other stocks in the construction industry by -22 percentage points.