Sectors & IndustriesConsumer CyclicalResidential Construction

Best Construction Stocks to Buy Now (2025)

Top construction stocks in 2025 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:

Everus Construction Group (NYSE:ECG) is the #1 top construction stock out of 23 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Everus Construction Group (NYSE:ECG) is: Value: C, Growth: C, Momentum: B, Sentiment: A, Safety: C, Financials: B, and AI: B.

Everus Construction Group (NYSE:ECG) has a Due Diligence Score of 38, which is 5 points higher than the construction industry average of 33.

ECG passed 13 out of 33 due diligence checks and has average fundamentals. Everus Construction Group has seen its stock return 58.94% over the past year, overperforming other construction stocks by 77 percentage points.

Everus Construction Group has an average 1 year price target of $84.00, a downside of -6.85% from Everus Construction Group's current stock price of $90.18.

Everus Construction Group stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Everus Construction Group, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 33.33% 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 #2 top construction stock out of 23 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Installed Building Products (NYSE:IBP) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: A, Financials: A, and AI: B.

Installed Building Products (NYSE:IBP) has a Due Diligence Score of 50, which is 17 points higher than the construction industry average of 33.

IBP passed 19 out of 38 due diligence checks and has strong fundamentals. Installed Building Products has seen its stock return 20.45% over the past year, overperforming other construction stocks by 39 percentage points.

Installed Building Products has an average 1 year price target of $226.67, a downside of -9.52% from Installed Building Products's current stock price of $250.51.

Installed Building Products stock has a consensus Hold recommendation according to Wall Street analysts. Of the 3 analysts covering Installed Building Products, 0% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 33.33% have issued a Sell rating, and 0% have issued a Strong Sell.

Toll Brothers (NYSE:TOL) is the #3 top construction stock out of 23 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 Toll Brothers (NYSE:TOL) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: D, Financials: B, and AI: C.

Toll Brothers (NYSE:TOL) has a Due Diligence Score of 37, which is 4 points higher than the construction industry average of 33.

TOL passed 13 out of 38 due diligence checks and has average fundamentals. Toll Brothers has seen its stock lose -15.2% over the past year, overperforming other construction stocks by 3 percentage points.

Toll Brothers has an average 1 year price target of $155.73, an upside of 19.48% from Toll Brothers's current stock price of $130.34.

Toll Brothers stock has a consensus Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Toll Brothers, 36.36% have issued a Strong Buy rating, 36.36% have issued a Buy, 27.27% have issued a hold, while 0% 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:

Lennar (NYSE:LEN) has an annual dividend yield of 1.65%, which is 1 percentage points higher than the construction industry average of 1.13%. 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 19.8% indicates that its dividend yield is sustainable for the long-term.

Century Communities (NYSE:CCS) has an annual dividend yield of 1.43%, which is the same as the construction industry average of 1.13%. 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 16.2% indicates that its dividend yield is sustainable for the long-term.

Meritage Homes (NYSE:MTH) has an annual dividend yield of 1.29%, which is the same as the construction industry average of 1.13%. 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 27.1% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were up 0.16% in the last day, and down -0.25% over the last week.

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

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 A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

M/I Homes has a valuation score of 43, which is 9 points higher than the construction industry average of 34. It passed 3 out of 7 valuation due diligence checks.

M/I Homes's stock has dropped -16.92% in the past year. It has overperformed other stocks in the construction industry by 1 percentage points.

Taylor Morrison Home (NYSE:TMHC) 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.

Taylor Morrison Home has a valuation score of 43, which is 9 points higher than the construction industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Taylor Morrison Home's stock has dropped -14.89% in the past year. It has overperformed other stocks in the construction industry by 3 percentage points.

Century Communities (NYSE:CCS) 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.

Century Communities has a valuation score of 43, which is 9 points higher than the construction industry average of 34. It passed 3 out of 7 valuation due diligence checks.

Century Communities's stock has dropped -33.17% in the past year. It has underperformed other stocks in the construction industry by -15 percentage points.

42.86% of construction stocks rated by analysts are a hold right now. On average, analysts expect construction stocks to rise by 13.22% over the next year.

4.55% of construction stocks have a Zen Rating of A (Strong Buy), 4.55% of construction stocks are rated B (Buy), 68.18% are rated C (Hold), 18.18% are rated D (Sell), and 4.55% are rated F (Strong Sell).