Considering investing in construction stocks? While the best construction stocks depend on your portfolio and investment goals, we've identified some construction stocks that are worth keeping an eye on in the building sector. Keep reading to learn more about construction stocks and how to start investing.
7 popular construction stocks to watch
We round up a selection of stocks in or related to the building industry, weighting the list more heavily towards popular mid- and large-cap stocks.
| Best stock | 1-year return | Market cap | Exchange | Volume | Buy now on CIBC Investor's Edge |
|---|---|---|---|---|---|
| United States Lime-and-Minerals (USLM.US) | -19.83% | $3.4 billion (USD) | NASDAQ | 34,935 | Buy now |
| Caterpillar (CAT.US) | (data unavailable) | $266.1 billion (USD) | NYSE | (data unavailable) | Buy now |
| Summit Materials (SUM.US) | 3.33% | $9.2 billion (USD) | NYSE | 4,664,636 | Buy now |
| Granite Construction Incorporated (GVA.US) | 7.32% | $4.7 billion (USD) | NYSE | 361,702 | Buy now |
| Eagle Materials (EXP.US) | -25.88% | $7.3 billion (USD) | NYSE | 168,174 | Buy now |
| DR Horton (DHI.US) | (data unavailable) | $47.4 billion (USD) | NYSE | (data unavailable) | Buy now |
| EMCOR Group (EME.US) | 19.50% | $27.2 billion (USD) | NYSE | 146,000 | Buy now |
What to look for when investing in construction stock
The building industry is affected by a range of complex factors such as trade policies, regulations, and fluctuating supply and demand. So when considering construction stocks to buy, it's important that you have access to vital information about a company's financial health, leadership team, and market positioning.
Also keep in mind that, while volatility can be ideal for day traders, long-term investors will want to look for stocks to offer steadier gains over time.
How to invest in construction stock
- Research the building industry. Before investing, learn about the construction stock sector, its trends and the companies within it. Look at each company's financial health, potential for growth and past performance to identify stocks that fit your investment goals.
- Choose a stock trading platform. Compare trading fees, access to trading tools and user interface options. We've identified reliable trading platforms to help narrow down your options below or check out the best stock trading apps in Canada to find one that suits your needs.
- Open and fund your account. Sign up with your personal details and link a bank account or funding method to deposit money before you start trading.
- Select the construction stock(s) to buy. Search by company name or ticker symbol, like GVA or USLM. Compare key metrics such as market cap, price history and earnings per share to pick the best stock for your strategy.
- Buy the stock and monitor performance. Place your order to buy the stock and track its performance over time. Consider setting alerts, signing up for industry newsletters or using platform research tools to stay up to date on market changes.
Our top picks for where to buy construction stocks
Are construction stocks a good investment?
While it's possible to turn a profit investing in construction stocks, keep in mind that—like any investment—construction stocks are not immune to risk. These stocks are subject to fluctuating conditions both in the market and in the building industry, so carefully vet your picks before you invest.What are the best construction stocks?
A lot of factors go into picking the best construction stocks. Stock performance can be impacted by factors like market conditions, company decisions and global events. Plus, what may be a strong construction stock investment for one person might not be suitable for another.
That said, we rounded up this list of popular construction stocks in or related to the building industry to help narrow down your options:
- United States Lime-and-Minerals (USLM)
- Caterpillar (CAT)
- Summit Materials (SUM)
- Granite Construction Incorporated (GVA)
- Eagle Materials (EXP)
- DR Horton (DHI)
- EMCOR Group (EME)
Keep in mind that this is not a "best" list or a recommendation. It highlights some construction stocks for informational purposes only and does not indicate past or future performance or investment advice. We do not guarantee any investment performance.
We've outlined detailed company and stock performance details for each construction stock below. Keep reading to decide if any of these companies are the right investment for you.
United States Lime-and-Minerals (USLM)
United States Lime & Minerals, Inc. manufactures and supplies lime and limestone products in the United States. It extracts limestone from open-pit quarries and an underground mine, and processes it as pulverized limestone, quicklime, hydrated lime, and lime slurry.
| Closing stock price | $121.57 |
|---|---|
| Market Capitalization | $3.4 billion |
| Gross profit (TTM) | $199.9 million |
| Profit margin | 35.83% |
| Revenue (TTM) | $364.8 million |
| Earnings per share (TTM) | $4.55 |
| 52-week stock price range | $80.34 – $156.24 |
Caterpillar (CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. Its Construction Industries segment offers asphalt pavers, cold planers, compactors, forestry machines, material handlers, motor graders, pipelayers, road reclaimers, telehandlers, track-type tractors, and track and wheel excavators; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.
| Market Capitalization | $266.1 billion |
|---|---|
| Gross profit (TTM) | $19.5 billion |
| Profit margin | 14.34% |
| Revenue (TTM) | $64.7 billion |
| Earnings per share (TTM) | $19.48 |
| 52-week stock price range | $264.25 – $596.21 |
Summit Materials (SUM)
Summit Materials, Inc. operates as a vertically integrated construction materials company in the United States and Canada. It operates in three segments: West, East, and Cement.
| Closing stock price | $52.49 |
|---|---|
| Market Capitalization | $9.2 billion |
| Gross profit (TTM) | $1.1 billion |
| Profit margin | 3.93% |
| Revenue (TTM) | $3.8 billion |
| Earnings per share (TTM) | $0.85 |
| 52-week stock price range | $50.30 – $54.07 |
Granite Construction Incorporated (GVA)
Granite Construction Incorporated operates as an infrastructure contractor in the United States. It operates through two segments: Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies; and construction of various complex projects, including infrastructure and site development, mining, public safety, tunnel, solar, battery storage, and power related projects.
| Closing stock price | $107.53 |
|---|---|
| Market Capitalization | $4.7 billion |
| Gross profit (TTM) | $694.2 million |
| Profit margin | 4.31% |
| Revenue (TTM) | $4.2 billion |
| Earnings per share (TTM) | $3.66 |
| 52-week stock price range | $68.90 – $112.03 |
Eagle Materials (EXP)
Eagle Materials Inc. , through its subsidiaries, manufactures and sells heavy construction products and light building materials in the United States. The company operates in four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard.
| Closing stock price | $223.72 |
|---|---|
| Market Capitalization | $7.3 billion |
| Gross profit (TTM) | $667.7 million |
| Profit margin | 19.41% |
| Revenue (TTM) | $2.3 billion |
| Earnings per share (TTM) | $13.58 |
| 52-week stock price range | $191.70 – $303.22 |
DR Horton (DHI)
D. R. Horton, Inc.
| Market Capitalization | $47.4 billion |
|---|---|
| Gross profit (TTM) | $7.7 billion |
| Profit margin | 10.47% |
| Revenue (TTM) | $34.3 billion |
| Earnings per share (TTM) | $11.58 |
| 52-week stock price range | $109.46 – $183.98 |
EMCOR Group (EME)
EMCOR Group, Inc. provides electrical and mechanical construction and facilities, building, and industrial services in the United States and the United Kingdom. It offers design, integration, installation, startup, operation, and maintenance services related to power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation; low-voltage systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; computerized traffic control systems, and signal and communication equipment; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and piping systems; control and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging; millwright; and steel fabrication, erection, and welding services.
| Closing stock price | $615.07 |
|---|---|
| Market Capitalization | $27.2 billion |
| Gross profit (TTM) | $3.1 billion |
| Profit margin | 6.96% |
| Revenue (TTM) | $16.2 billion |
| Earnings per share (TTM) | $24.85 |
| 52-week stock price range | $320.42 – $778.64 |
Compare trading platforms to buy construction stock
Compare special offers, low fees and a wide range of investment options among popular trading platforms in Canada. Note that the dollar amounts in the table below are in CAD.
Finder Score for stock trading platforms
To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score, the better the platform—it's that simple.
Bottom line
If you're considering adding construction stocks to your portfolio, make sure you thoroughly look into any companies before investing to help mitigate risk. We've compiled a list of construction stocks to help narrow down your options. Then choose a legitimate stock trading platform to start investing. After that it comes down to monitoring the building industry to know when to buy, sell or hold.Frequently asked questions about construction stocks
Sources
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