Construction shares: Popular companies to invest in

Discover popular stocks plus considerations when investing in the construction industry.

Ways to invest in construction Learn more
See some construction stocks See some top stocks

Construction may not be the most stylish sector to invest in, but it’s fundamental for the future growth of the economy. You see construction everywhere — there’s always a new housing development, hospital or office block being built. Construction isn’t all hard hats and high vis jackets — it’s a very broad term that refers to every stage in the process, as well as the companies that provide materials or manufacture the tools required.

UK construction stocks

The coronavirus pandemic has, without a doubt, had a major impact on construction in the UK, but, like other impacted industries, it is seeing some recovery as construction works are allowed to continue.

Construction markets are cyclical, so they’re not on constant upward trends and instead move in a cycle. As the economy grows, construction has a boom, but the reverse is also true.

What are cyclical stocks?

Cyclical stocks are ones that tend to do well when people are spending money on “wants”, as well as needs. This tends to be at the early to mid stages of the economic cycle.

RecessionEarly cycleMid cycleLate cycle

Some UK stocks include:

Investing in global construction stocks from the UK

We’ve listed some examples of construction stocks with more information about them, and you can see an A-Z list below if you’ve got any in mind.

Image logo

Taylor Wimpey (TW.LSE)

Taylor Wimpey is a UK construction business based in High Wycome that builds residential homes. It is listed on the London Stock Exchange and is part of the FTSE 100. In the first 6 months of 2021, Taylor Wimpey built more than 7,000 new homes.

Compare brokers to buy Taylor Wimpey shares

Image logo

Balfour Beatty (BBY.LSE)

Balfour Beatty is a British infrastructure company based in London. It’s currently working on the HS2 and Crossrail. In 2018, Balfour Beatty was named the biggest construction company in the UK – it’s part of the FTSE 250.

Compare brokers to buy Balfour Beatty shares

Image logo

Ameresco (AMRC.US)

Ameresco is a renewable energy asset developer, owner and operator. It deals with infrastructure in North America and the UK. Ameresco completes energy saving and environmentally responsible projects.

Compare brokers to buy Ameresco shares

How to invest in consumer goods stocks

  1. Choose stocks to invest in. You can check out some construction stocks above and find out more about them.
  2. Choose an investment platform. You’ll need one that lets you invest in the stock exchange that your chosen stocks are listed on.
  3. Sign up and fund your account. You might need to wait for your account to be verified and for your funds to hit the account before you can begin.
  4. Find your chosen stock. You can search its name or ticker.
  5. Review and buy. It’s as easy as that!

Why invest in construction stocks?

Investing in construction isn’t just about the physical build – you can invest in companies that manufacture machinery used in construction, as well as material suppliers — those bricks have to come from somewhere! You can also invest in companies that design and build residential homes from start to finish.

With so many cogs in place, construction is a well-oiled machine and tends to perform quite well, but not consistently. You need to make sure that you’re aware of the risks involved, such as the upfront costs and the risks of poor workmanship, as well as the fact that it’s a cyclical stock.

Compare platforms to buy corn stocks

Name Product Finder Score Min. initial deposit Price per trade Frequent trader rate Platform fees Offer Link
Finder Award
OFFER
CMC Invest share dealing account
4.4
★★★★★
£0
£0
N/A
£0
Earn up to £1,000 when you transfer a minimum of £25,000 into your CMC account, plus get your first 3 months free when you upgrade to Plus plan. T&Cs apply. Capital at risk.
Go to site

Capital at risk

Platform details
XTB
4.4
★★★★★
£0
£0
£0
£0
Earn up to 5.2% interest on uninvested cash.
Go to site

Capital at risk

Platform details
InvestEngine
4.4
★★★★★
£100
£0
N/A
0% - 0.25%
Get a Welcome Bonus of up to £50 when you invest at least £100 with InvestEngine. T&Cs apply.
Go to site

Capital at risk

Platform details
Saxo Share Dealing Account
4.3
★★★★★
£0
£3
N/A
0.12% per year
Go to site

Capital at risk

Platform details
Finder Award
FREE TRADES
eToro Free Stocks
4.3
★★★★★
$100
£0 on stocks
N/A
£0
Go to site

Capital at risk. Other fees apply.

Platform details
Wealthify
4.2
★★★★★
£1
£0
N/A
0.6%
Go to site

Capital at risk

Platform details
Hargreaves Lansdown Fund and Share Account
4.2
★★★★★
£1
£11.95
£5.95
£0
Get back up to £100 of online trading fees until 21 June. Capital at risk. T&Cs apply.
Go to site

Capital at risk

Platform details
Halifax share dealing account
4.1
★★★★★
£20
£9.50
£2
£36 per year
Go to site

Capital at risk

Platform details
interactive investor Trading Account
4.1
★★★★★
£0
£3.99 (free regular investing)
£0
£4.99-£19.99
Go to site

Capital at risk

Platform details
TILLIT
Not yet rated
£1
N/A
N/A
0.4%
Go to site

Capital at risk

Platform details
loading

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Bottom line

If you’re considering adding some construction stocks to your portfolio, make sure that you’ve done your research and know which stage in the economic cycle the sector is currently sitting in — this will help you manage your expectations for profits and dividends. Look into the projects that the companies are working on and look into their timescales, whether they’re in debt and if they pay dividends.

Browse all construction stock guides

More guides on Finder

  • How to buy Watkin Jones shares

    Ever wondered how to buy shares in Watkin Jones? We explain how and compare a range of providers that can give you access to many brands, including Watkin Jones.

  • How to buy Persimmon shares

    Find out how to buy shares in Persimmon, see Persimmon’s share prices over the last three months and check out our must-do checklist if you’re looking to invest.

  • How to buy Barratt Developments shares

    Ever wondered how to buy shares in Barratt Developments? We explain how and compare a range of providers that can give you access to many brands, including Barratt Developments.

  • How to buy Babcock International Group shares

    Ever wondered how to buy shares in Babcock International? We explain how and compare a range of providers that can give you access to many brands, including Babcock International.

  • How to buy Balfour Beatty shares

    Ever wondered how to buy shares in Balfour Beatty? We explain how and compare a range of providers that can give you access to many brands, including Balfour Beatty.

  • How to buy Taylor Wimpey shares

    Learn about Taylor Wimpeys recent share performance, check how and where you can buy shares and read our checklist of things to consider before investing your cash.

Go to site