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Best Construction Stocks to Buy Now (2025)

Top construction stocks in 2025 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:

Meritage Homes (NYSE:MTH) is the top construction stock with a Due Diligence Score of 53, which is 17 points higher than the construction industry average of 36. It passed 19 out of 38 due diligence checks and has strong fundamentals. Meritage Homes has seen its stock lose -4.36% over the past year, underperforming other construction stocks by -21 percentage points.

Meritage Homes has an average 1 year price target of $63.75, a downside of -20.89% from Meritage Homes's current stock price of $80.58.

Meritage Homes stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Meritage Homes, 25% have issued a Strong Buy rating, 25% have issued a Buy, 25% have issued a hold, while 25% have issued a Sell rating, and 0% have issued a Strong Sell.

Green Brick Partners (NYSE:GRBK) is the second best 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 20.69% over the past year, overperforming other construction stocks by 4 percentage points.

Green Brick Partners has an average 1 year price target of $78.00, an upside of 30.35% from Green Brick Partners's current stock price of $59.84.

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.

Installed Building Products (NYSE:IBP) is the third best construction stock with a Due Diligence Score of 46, which is 10 points higher than the construction industry average of 36. It passed 18 out of 38 due diligence checks and has strong fundamentals. Installed Building Products has seen its stock return 6.85% over the past year, underperforming other construction stocks by -10 percentage points.

Installed Building Products has an average 1 year price target of $241.25, an upside of 23.09% from Installed Building Products's current stock price of $196.00.

Installed Building Products stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Installed Building Products, 25% have issued a Strong Buy rating, 12.5% have issued a Buy, 50% have issued a hold, while 12.5% 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 1.53%, which is the same as the construction industry average of 1.11%.

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

Lennar (NYSE:LEN) has an annual dividend yield of 1.41%, which is the same as the construction industry average of 1.11%. 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 12.4% indicates that its dividend yield is sustainable for the long-term.

Kb Home (NYSE:KBH) has an annual dividend yield of 1.4%, which is the same as the construction industry average of 1.11%. 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 up 0.09% in the last day, and up 7.37% over the last week.

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

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 35 points higher than the construction industry average of 36. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has dropped -7.81% in the past year. It has underperformed 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 35 points higher than the construction industry average of 36. It passed 5 out of 7 valuation due diligence checks.

Century Communities's stock has dropped -10.93% in the past year. It has underperformed other stocks in the construction industry by -27 percentage points.

Meritage Homes (NYSE:MTH) is the third most undervalued construction stock based on WallStreetZen's Valuation Score. Meritage Homes has a valuation score of 71, which is 35 points higher than the construction industry average of 36. It passed 5 out of 7 valuation due diligence checks.

Meritage Homes's stock has dropped -4.36% in the past year. It has underperformed other stocks in the construction industry by -21 percentage points.