Sectors & IndustriesConsumer CyclicalResidential Construction

Best Construction Stocks to Buy Now (2026)

Top construction stocks in 2026 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.

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:

Green Brick Partners (NYSE:GRBK) is the #1 top construction stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Green Brick Partners (NYSE:GRBK) is: Value: C, Growth: D, Momentum: C, Sentiment: B, Safety: D, Financials: A, and AI: C.

Green Brick Partners (NYSE:GRBK) has a Due Diligence Score of 31, which is 3 points higher than the construction industry average of 28.

GRBK passed 10 out of 33 due diligence checks and has average fundamentals. Green Brick Partners has seen its stock return 15.52% over the past year, overperforming other construction stocks by 22 percentage points.

Legacy Housing (NASDAQ:LEGH) is the #2 top construction stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Legacy Housing (NASDAQ:LEGH) is: Value: B, Growth: D, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Legacy Housing (NASDAQ:LEGH) has a Due Diligence Score of 40, which is 12 points higher than the construction industry average of 28.

LEGH passed 12 out of 33 due diligence checks and has average fundamentals. Legacy Housing has seen its stock return 8.3% over the past year, overperforming other construction stocks by 15 percentage points.

Horton D R (NYSE:DHI) is the #3 top construction stock out of 20 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Horton D R (NYSE:DHI) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: A, Financials: B, and AI: C.

Horton D R (NYSE:DHI) has a Due Diligence Score of 35, which is 7 points higher than the construction industry average of 28.

DHI passed 12 out of 38 due diligence checks and has average fundamentals. Horton D R has seen its stock return 21.2% over the past year, overperforming other construction stocks by 28 percentage points.

Horton D R has an average 1 year price target of $164.80, an upside of 5.68% from Horton D R's current stock price of $155.94.

Horton D R stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Horton D R, 30% have issued a Strong Buy rating, 0% have issued a Buy, 60% have issued a hold, while 10% 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:

Meritage Homes (NYSE:MTH) has an annual dividend yield of 2.42%, which is 1 percentage points higher than the construction industry average of 1.59%. 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 32.1% indicates that its dividend yield is sustainable for the long-term.

Lennar (NYSE:LEN) has an annual dividend yield of 2.29%, which is 1 percentage points higher than the construction industry average of 1.59%. 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 28.8% indicates that its dividend yield is sustainable for the long-term.

Century Communities (NYSE:CCS) has an annual dividend yield of 1.95%, which is the same as the construction industry average of 1.59%. Century Communities's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Century Communities's dividend has shown consistent growth over the last 10 years.

Century Communities's dividend payout ratio of 26.6% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were down -2.12% in the last day, and up 0.48% over the last week.

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

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:

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 29, which is 14 points higher than the construction industry average of 15. It passed 2 out of 7 valuation due diligence checks.

M/I Homes's stock has gained 35.08% in the past year. It has overperformed other stocks in the construction industry by 42 percentage points.

Toll Brothers (NYSE:TOL) 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.

Toll Brothers has a valuation score of 14, which is -1 points higher than the construction industry average of 15. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates TOL a Valuation Rating of "B".

Toll Brothers's stock has gained 35.06% in the past year. It has overperformed other stocks in the construction industry by 42 percentage points.

Legacy Housing (NASDAQ:LEGH) 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.

Legacy Housing has a valuation score of 29, which is 14 points higher than the construction industry average of 15. It passed 2 out of 7 valuation due diligence checks.

Legacy Housing's stock has gained 8.3% in the past year. It has overperformed other stocks in the construction industry by 15 percentage points.

35.71% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 9.51% over the next year.

0% of construction stocks have a Zen Rating of A (Strong Buy), 0% of construction stocks are rated B (Buy), 76.47% are rated C (Hold), 23.53% are rated D (Sell), and 0% are rated F (Strong Sell).