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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
Country
Market Cap
Shares
Institutional %
Insider %
Net Insider (L12M)
Net Insider (L3M)
LEN
LENNAR CORP
United States
$45.56B278,343,57372.64%27.36%Net SellingNet Selling
IBP
INSTALLED BUILDING PRODUCTS INC
United States
$6.06B28,445,61443.99%56.01%Net SellingNet Selling
TMHC
TAYLOR MORRISON HOME CORP
United States
$6.33B105,764,42395.68%2.89%Net SellingNet Selling
KBH
KB HOME
United States
$5.56B75,915,20591.72%8.28%Net SellingNet Selling
DHI
HORTON D R INC
United States
$49.33B329,312,24881.07%2.22%Net SellingNet Selling
GRBK
GREEN BRICK PARTNERS INC
United States
$2.59B44,930,65644.81%55.19%Net SellingNet Selling
MTH
MERITAGE HOMES CORP
United States
$6.63B36,319,01465.81%34.19%Net SellingNet Selling
CVCO
CAVCO INDUSTRIES INC
United States
$3.13B8,346,61892.07%7.93%Net BuyingNet Selling
LEGH
LEGACY HOUSING CORP
United States
$589.43M24,316,48824.12%75.88%Net SellingNet Selling
HOV
HOVNANIAN ENTERPRISES INC
United States
$1.05B6,095,6609.54%90.46%Net SellingNet Selling
MHO
M/I HOMES INC
United States
$3.63B27,751,65892.65%7.35%Net BuyingNet Buying
PHM
PULTEGROUP INC
United States
$25.07B210,342,11379.39%20.61%Net Selling
TOL
TOLL BROTHERS INC
United States
$13.65B104,170,00076.08%23.92%Net SellingNet Selling
BZH
BEAZER HOMES USA INC
United States
$929.07M31,547,28482.10%12.11%Net SellingNet Selling
DFH
DREAM FINDERS HOMES INC
United States
$2.74B93,728,23022.61%77.39%Net SellingNet Selling
LGIH
LGI HOMES INC
United States
$2.43B23,567,44168.21%31.79%Net SellingNet Selling
CCS
CENTURY COMMUNITIES INC
United States
$2.81B31,790,75573.16%26.84%Net SellingNet Selling
SKY
SKYLINE CHAMPION CORP
United States
$4.65B57,753,51766.45%33.55%Net BuyingNet Buying
TPH
TRI POINTE HOMES INC
United States
$3.77B94,877,37769.65%30.35%Net BuyingNet Selling
NVR
NVR INC
United States
$24.05B3,132,37381.69%13.70%Net BuyingNet Selling
UHG
UNITED HOMES GROUP INC
United States
$253.95M48,371,4659.22%13.53%Net Selling

Construction Stocks FAQ

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

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

1. Lennar (NYSE:LEN)


Lennar (NYSE:LEN) is the top construction stock with a Zen Score of 46, which is 8 points higher than the construction industry average of 38. It passed 16 out of 38 due diligence checks and has strong fundamentals. Lennar has seen its stock return 48.12% over the past year, overperforming other construction stocks by 11 percentage points.

Lennar has an average 1 year price target of $170.77, an upside of 4.34% from Lennar's current stock price of $163.67.

Lennar stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Lennar, 38.46% have issued a Strong Buy rating, 30.77% have issued a Buy, 15.38% have issued a hold, while 15.38% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Installed Building Products (NYSE:IBP)


Installed Building Products (NYSE:IBP) is the second best construction stock with a Zen Score of 45, which is 7 points higher than the construction industry average of 38. It passed 17 out of 38 due diligence checks and has strong fundamentals. Installed Building Products has seen its stock return 93.9% over the past year, overperforming other construction stocks by 57 percentage points.

Installed Building Products has an average 1 year price target of $248.13, an upside of 16.43% from Installed Building Products's current stock price of $213.12.

Installed Building Products stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Installed Building Products, 50% have issued a Strong Buy rating, 12.5% have issued a Buy, 37.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Kb Home (NYSE:KBH)


Kb Home (NYSE:KBH) is the third best construction stock with a Zen Score of 44, which is 6 points higher than the construction industry average of 38. It passed 16 out of 38 due diligence checks and has strong fundamentals. Kb Home has seen its stock return 65.8% over the past year, overperforming other construction stocks by 29 percentage points.

Kb Home has an average 1 year price target of $70.63, a downside of -3.58% from Kb Home's current stock price of $73.25.

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

What are the construction stocks with highest dividends?

Out of 8 construction stocks that have issued dividends in the past year, the 3 construction stocks with the highest dividend yields are:

1. Installed Building Products (NYSE:IBP)


Installed Building Products (NYSE:IBP) has an annual dividend yield of 1.38%, which is the same as the construction industry average of 0.95%.

Installed Building Products's dividend payout ratio of 33.1% 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 1.16%, which is the same as the construction industry average of 0.95%. 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 9.9% 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 1.07%, which is the same as the construction industry average of 0.95%.

Century Communities's dividend payout ratio of 10.4% indicates that its dividend yield is sustainable for the long-term.

Why are construction stocks up?

Construction stocks were up 0.07% in the last day, and up 1.51% 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 21 points higher than the construction industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Century Communities's stock has gained 33.77% in the past year. It has underperformed 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 21 points higher than the construction industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Hovnanian Enterprises's stock has gained 89.44% in the past year. It has overperformed other stocks in the construction industry by 52 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 21 points higher than the construction industry average of 50. It passed 5 out of 7 valuation due diligence checks.

Beazer Homes Usa's stock has gained 42.48% in the past year. It has overperformed other stocks in the construction industry by 5 percentage points.

Are construction stocks a good buy now?

52.63% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 6.41% 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 11.5x.
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