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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
Performance Score
Market Cap
Revenue
EBITDA
Earnings
EPS
Revenue Growth Y/Y
Revenue Growth 5Y
Earnings Growth Y/Y
Earnings Growth 5Y
Earnings Date
CVCO
CAVCO INDUSTRIES INC
$3.27B$1.85B$234.92M$171.20M$19.94-14.77%13.93%-27.68%20.56%2024-05-16
KBH
KB HOME
$5.28B$6.41B$807.69M$590.18M$7.25-7.14%7.11%-22.46%30.30%
MTH
MERITAGE HOMES CORP
$6.24B$6.14B$974.76M$738.75M$20.17-2.45%11.61%-25.41%28.89%2024-04-24
TMHC
TAYLOR MORRISON HOME CORP
$6.53B$7.42B$1.04B$768.93M$7.09-9.81%11.90%-22.60%30.83%2024-04-24
LEN
LENNAR CORP
$47.32B$34.23B$5.29B$3.94B$13.731.67%10.72%-12.77%20.25%
MDC
MDC HOLDINGS INC
$4.69B$4.64B$551.66M$401.01M$5.42-18.80%8.66%-31.13%11.16%2024-04-30
LEGH
LEGACY HOUSING CORP
$508.77M$189.14M$71.34M$54.46M$2.23-26.41%3.16%-19.78%15.82%2024-05-07
GRBK
GREEN BRICK PARTNERS INC
$2.69B$1.78B$372.81M$284.63M$6.201.13%23.31%2.14%43.47%2024-05-01
DHI
HORTON D R INC
$53.77B$35.93B$6.34B$4.73B$13.996.66%17.19%-13.91%27.57%2024-04-18
HOV
HOVNANIAN ENTERPRISES INC
$933.00M$2.83B$328.89M$200.40M$29.50-1.30%7.72%-1.83%57.96%
TPH
TRI POINTE HOMES INC
$3.62B$3.72B$488.72M$343.70M$3.48-14.56%2.63%-37.86%13.84%2024-04-25
IBP
INSTALLED BUILDING PRODUCTS INC
$7.24B$2.78B$495.80M$243.70M$8.654.08%15.76%11.18%37.50%2024-05-02
PHM
PULTEGROUP INC
$25.03B$16.06B$3.53B$2.60B$11.790.37%9.53%6.50%27.06%2024-04-23
LGIH
LGI HOMES INC
$2.69B$2.36B$264.16M$199.23M$8.482.35%9.41%-38.99%4.24%2024-04-30
TOL
TOLL BROTHERS INC
$13.27B$10.16B$1.98B$1.42B$13.04-0.99%6.75%13.29%21.92%2024-05-21
SKY
SKYLINE CHAMPION CORP
$4.83B$1.98B$297.85M$201.65M$3.52-28.08%8.80%-53.50%N/A2024-05-28
CCS
CENTURY COMMUNITIES INC
$3.01B$3.69B$366.60M$259.22M$8.12-18.06%11.45%-49.63%20.47%2024-04-24
BZH
BEAZER HOMES USA INC
$1.01B$2.15B$188.91M$156.01M$5.13-6.89%0.11%-25.76%12.08%2024-04-25
MHO
M/I HOMES INC
$3.62B$4.03B$601.75M$465.37M$16.76-2.37%12.02%-4.77%34.48%2024-04-24
DFH
DREAM FINDERS HOMES INC
$3.92B$3.75B$422.32M$307.94M$3.0312.15%48.32%13.48%-55.36%2024-05-02
NVR
NVR INC
$25.43B$9.31B$1.97B$1.59B$491.52-9.80%5.87%-6.41%17.49%2024-04-23
UHG
UNITED HOMES GROUP INC
$348.75M$421.47M$129.35M$125.06M$2.74N/A9.14%1,612.50%-60.44%

Construction Stocks FAQ

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

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

1. Cavco Industries (NASDAQ:CVCO)


Cavco Industries (NASDAQ:CVCO) 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 16 out of 33 due diligence checks and has strong fundamentals. Cavco Industries has seen its stock return 32.71% over the past year, underperforming other construction stocks by -19 percentage points.

Cavco Industries has an average 1 year price target of $380.00, a downside of -3.09% from Cavco Industries's current stock price of $392.11.

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.

2. Kb Home (NYSE:KBH)


Kb Home (NYSE:KBH) 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 18 out of 38 due diligence checks and has strong fundamentals. Kb Home has seen its stock return 73.51% over the past year, overperforming other construction stocks by 22 percentage points.

Kb Home has an average 1 year price target of $67.88, a downside of -2.42% from Kb Home's current stock price of $69.56.

Kb Home stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Kb Home, 16.67% have issued a Strong Buy rating, 25% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 8.33% have issued a Strong Sell.

3. Meritage Homes (NYSE:MTH)


Meritage Homes (NYSE:MTH) is the third best construction stock with a Zen Score of 48, which is 10 points higher than the construction industry average of 38. It passed 17 out of 38 due diligence checks and has strong fundamentals. Meritage Homes has seen its stock return 52.02% over the past year.

Meritage Homes has an average 1 year price target of $168.33, a downside of -2.49% from Meritage Homes's current stock price of $172.63.

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, 66.67% 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 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 3.42%, which is 2 percentage points higher than the construction industry average of 1.16%. 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. Installed Building Products (NYSE:IBP)


Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.15%, which is the same as the construction industry average of 1.16%.

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 1.08%, which is the same as the construction industry average of 1.16%. 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.

Why are construction stocks up?

Construction stocks were up 1.6% in the last day, and up 0.72% 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 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 55.01% in the past year. It has overperformed other stocks in the construction industry by 3 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 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 132.72% in the past year. It has overperformed other stocks in the construction industry by 81 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 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 116.14% in the past year. It has overperformed other stocks in the construction industry by 64 percentage points.

Are construction stocks a good buy now?

63.16% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to fall by -5.95% 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 12.61x.
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