Are construction stocks a good buy now?

Construction stocks aren't as flashy as high-growth tech stocks, but there is massive long-term demand for their services. For those focused on reliable returns over an extended period of time, construction stocks are a good buy right now.

What is the fastest-growing construction industry?

In recent years, the fastest-growing sectors of the construction industry include infrastructure projects, green and sustainable construction, and residential construction.

Are any construction companies in the Fortune 500?

Construction companies, including Fluor, Aecom (NYSE:ACM), and Jacobs Solutions (NYSE:J), are all part of the Fortune 500.

What are the construction stocks with the highest dividends?

Historically, materials producers tend to have the highest dividend yields. These are steady, slow-growth businesses where income is a big part of the total return picture. But dividend yields tend to fluctuate based on market sentiment, so investors should always check individual yields at the time of purchase to look for the best values.

How do construction companies make money?

Construction companies make money by completing projects or supplying materials for a price higher than their costs. More profitable companies tend to be more efficient. Some companies also make money from recurring revenue from maintenance, facility management, and engineering.

Should I invest in construction stocks during economic downturns?

If you have high conviction in the companies behind the stocks you're choosing in the construction industry, economic downturns can be an opportunity to find bargains in the stock market. However, make sure that the stock you're choosing is cheap because of unfavorable trends in the market and not because of other reasons that may cause the company to implode.

Best Construction Stocks for 2026 and How to Invest

Best Construction Stocks to Buy in 2026 and How to Invest

By Kristi Waterworth – Updated Apr 29, 2026 at 3:47 PM EST | Fact-checked by Parker Hicks

Key Points

Construction spending boosts, lifting related stocks via housing demands and government infrastructure plan.
Top construction stocks include diverse firms like Caterpillar and Vulcan Materials, focusing on machinery and materials.
Investing tips: consider industry trends, company fundamentals, and geographic focus to select the right stocks.

Construction spending is rising, and so are the stocks of the companies involved. Fueled by new housing demand and massive government investment in infrastructure as part of the Infrastructure Investment and Jobs Act of 2021. For investors, that creates opportunities across a wide range of companies involved in building homes, roads, and large-scale projects.

Construction stocks include homebuilders, materials suppliers, equipment manufacturers, and firms that manage complex projects from start to finish. Many are known for steady cash flow and dividends, but some also offer above-average growth tied to long-term infrastructure and development trends. Here are some of the best construction stocks to consider today.

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Caterpillar (NYSE:CAT)	$409.2 billion	0.68%	Machinery
United Rentals (NYSE:URI)	$60.2 billion	0.78%	Trading Companies and Distributors
Vulcan Materials (FRA:VMC)	$29.8 billion	0.75%	Construction Materials
Nucor (NYSE:NUE)	$51.7 billion	0.98%	Metals and Mining
Fluor (NYSE:FLR)	$6.2 billion	0.00%	Construction and Engineering
NV5 Global (NASDAQ:NVEE)	N/A	N/A	Professional Services

Data as of May 18, 2026. Showing 6 of 6 tickers.

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NYSE: CAT

Caterpillar

Today's Change

(-2.78%) $-24.70

Current Price

$863.61

Key Data Points

Market Cap

$409B

Day's Range

$859.39 - $893.32

52wk Range

$336.24 - $931.35

Volume

54K

Avg Vol

2.5M

Gross Margin

31.90%

Dividend Yield

0.68%

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When construction demand is booming, Caterpillar has a lot of ways to win. The company sells heavy equipment for construction sites, and it benefits from the corresponding boost in demand for raw materials that pushes mining companies to buy new equipment. Caterpillar also has a large financing arm, and the company makes billions annually on services and spare part sales.

2. United Rentals

When construction activity is brisk, many small to mid-sized contractors need a lot more equipment than what they have on hand. United Rentals (URI -0.23%) is the solution to that problem, offering a wide range of equipment from a network of 1,520 branches across North America and Europe.

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NYSE: URI

United Rentals

Today's Change

(-0.23%) $-2.18

Current Price

$958.97

Key Data Points

Market Cap

$60B

Day's Range

$953.29 - $967.59

52wk Range

$681.98 - $1021.47

Volume

110K

Avg Vol

587K

Gross Margin

35.56%

Dividend Yield

0.78%

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United Rentals is North America's largest equipment rental company, but it still has just 15% of a highly fragmented market. The company benefits from renting to a broad range of markets, including construction and utilities, helping it generate steady results regardless of fluctuations in demand from individual sectors.

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The company pays a dividend and has a long history of returning excess cash to investors via share buybacks. United Rentals has reduced its share count by roughly a third over the past decade, meaning that each share an investor owns is worth more of the overall company now than it would have been a decade ago.

3. Vulcan Materials

Vulcan Materials (VMC +0.41%) is the country's largest producer of construction aggregates, primarily crushed stone, sand, and gravel, as well as a major producer of construction materials, including asphalt and concrete. This is a business where scale really matters.

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NYSE: VMC

Vulcan Materials

Today's Change

(0.41%) $1.10

Current Price

$268.93

Key Data Points

Market Cap

$35B

Day's Range

$267.31 - $270.67

52wk Range

$252.35 - $331.09

Volume

233K

Avg Vol

1.3M

Gross Margin

27.68%

Dividend Yield

0.74%

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It isn't cost-effective to ship sand and stone thousands of miles to a job site. Vulcan's network of more than 400 aggregates facilities, as well as 70 asphalt facilities and 140 concrete sites, is spread across the U.S., giving it nationwide exposure to construction activity and road building.

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NYSE: NUE

Nucor

Today's Change

(-1.16%) $-2.64

Current Price

$224.38

Key Data Points

Market Cap

$52B

Day's Range

$223.24 - $227.79

52wk Range

$106.21 - $235.45

Volume

21K

Avg Vol

1.5M

Gross Margin

13.98%

Dividend Yield

0.98%

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Today, Nucor ranks among the largest U.S. steel manufacturers and has a reputation as one of the few that can remain profitable when demand wanes.

The steel industry has been the source of a lot of investor heartbreak over the years, with the industry forced to restructure under pressure from lower-cost foreign competition. There's little Nucor can do about changes in demand for steel, but the company has a proven formula to keep costs low that has made investing in steel a good option for the first time in a generation.

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5. Fluor

Fluor (FLR +0.32%) is a century-old engineering and construction company that has grown from humble beginnings as a Texas-based builder of oil rigs into a multinational giant. Fluor offers a range of services, from project design and management all the way through to actual construction.

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NYSE: FLR

Fluor

Today's Change

(0.43%) $0.19

Current Price

$44.55

Key Data Points

Market Cap

$6.2B

Day's Range

$43.70 - $44.83

52wk Range

$37.34 - $57.50

Volume

32K

Avg Vol

2.8M

Gross Margin

-162.66%

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Buying into Fluor provides investors with exposure to commercial and private sector construction around the world, emphasizing megaprojects such as New York State's replacement of the Tappan Zee Bridge.

6. NV5 Global

Think of NV5 Global (NASDAQ:NVEE) as a scaled-down version of Fluor. NV5 is focused on the industrial engineering side of the business, providing professional and technical consulting services for government and business clients.

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NASDAQ: NVEE

NV5 Global

Today's Change

(0.00%) $0.00

Current Price

$0.00

Key Data Points

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These services can include everything from environmental impact assessments and code compliance to civil engineering and permit management. The company also manages projects, ensuring that buildings are completed on schedule and as designed. NV5 is smaller than some of its rivals, but that also gives it more growth stock potential as it races to expand and take share.

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Construction stocks FAQ

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

TMFMaldivesBlue

@MaldivesBlues

Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.

Best Construction Stocks to Buy in 2026 and How to Invest

Key Points

Key Data Points

2. United Rentals

Key Data Points

3. Vulcan Materials

Key Data Points

Key Data Points

5. Fluor

Key Data Points

6. NV5 Global

Key Data Points

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Construction stocks FAQ

Are construction stocks a good buy now?

What is the fastest-growing construction industry?

Are any construction companies in the Fortune 500?

What are the construction stocks with the highest dividends?

How do construction companies make money?

Should I invest in construction stocks during economic downturns?

How to buy construction stocks

Benefits and risks of investing in Construction stocks

The bottom line

Related investing topics

FAQ

6 top Construction stocks for 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

1. Caterpillar

2. United Rentals

3. Vulcan Materials

4. Nucor

5. Fluor

6. NV5 Global