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:

Everus Construction Group (NYSE:ECG) is the #1 top construction stock out of 21 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 Everus Construction Group (NYSE:ECG) is: Value: C, Growth: C, Momentum: B, Sentiment: A, Safety: C, Financials: B, and AI: C.

Everus Construction Group (NYSE:ECG) has a Due Diligence Score of 44, which is 11 points higher than the construction industry average of 33.

ECG passed 15 out of 33 due diligence checks and has strong fundamentals. Everus Construction Group has seen its stock return 155.91% over the past year, overperforming other construction stocks by 174 percentage points.

Everus Construction Group has an average 1 year price target of $146.63, a downside of -6.44% from Everus Construction Group's current stock price of $156.72.

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

Toll Brothers (NYSE:TOL) is the #2 top construction stock out of 21 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: B.

Toll Brothers (NYSE:TOL) has a Due Diligence Score of 42, which is 9 points higher than the construction industry average of 33.

TOL passed 15 out of 38 due diligence checks and has strong fundamentals. Toll Brothers has seen its stock return 18.65% over the past year, overperforming other construction stocks by 37 percentage points.

Toll Brothers has an average 1 year price target of $165.92, an upside of 31.45% from Toll Brothers's current stock price of $126.22.

Toll Brothers stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Toll Brothers, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 8.33% have issued a Strong Sell.

Legacy Housing (NASDAQ:LEGH) is the #3 top construction stock out of 21 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: B.

Legacy Housing (NASDAQ:LEGH) has a Due Diligence Score of 47, which is 14 points higher than the construction industry average of 33.

LEGH passed 14 out of 33 due diligence checks and has strong fundamentals. Legacy Housing has seen its stock lose -6.08% over the past year, overperforming other construction stocks by 12 percentage points.

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 2.43%, which is 1 percentage points higher than the construction industry average of 1.66%. 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.

Meritage Homes (NYSE:MTH) has an annual dividend yield of 2.26%, which is 1 percentage points higher than the construction industry average of 1.66%. 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.

Kb Home (NYSE:KBH) has an annual dividend yield of 2.22%, which is 1 percentage points higher than the construction industry average of 1.66%. 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 18.9% indicates that its dividend yield is sustainable for the long-term.

Construction stocks were down -2.57% in the last day, and down -6.89% over the last week. Toll Brothers was the among the top losers in the residential construction industry, dropping -4.38% yesterday.

Shares of homebuilding and housing-related companies are trading lower as rising bond yields and inflation concerns threaten the outlook for new housing supply and demand.

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:

Toll Brothers (NYSE:TOL) 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.

Toll Brothers has a valuation score of 43, which is 11 points higher than the construction industry average of 32. It passed 3 out of 7 valuation due diligence checks.

Toll Brothers's stock has gained 18.65% in the past year. It has overperformed other stocks in the construction industry by 37 percentage points.

M/I Homes (NYSE:MHO) 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.

M/I Homes has a valuation score of 43, which is 11 points higher than the construction industry average of 32. It passed 3 out of 7 valuation due diligence checks.

M/I Homes's stock has gained 9.91% in the past year. It has overperformed other stocks in the construction industry by 28 percentage points.

Taylor Morrison Home (NYSE:TMHC) 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.

Taylor Morrison Home has a valuation score of 43, which is 11 points higher than the construction industry average of 32. It passed 3 out of 7 valuation due diligence checks.

Taylor Morrison Home's stock has dropped -7.04% in the past year. It has overperformed other stocks in the construction industry by 11 percentage points.

46.67% of construction stocks rated by analysts are a buy right now. On average, analysts expect construction stocks to rise by 25.31% over the next year.

0% of construction stocks have a Zen Rating of A (Strong Buy), 5.26% of construction stocks are rated B (Buy), 73.68% are rated C (Hold), 21.05% are rated D (Sell), and 0% are rated F (Strong Sell).