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 have been infrastructure, 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 find the best values.

How do construction companies make money?

Construction companies make money by completing projects or supplying materials at prices 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.

6 Best Construction Stocks for 2026 and How to Invest

By Kristi Waterworth – Updated Aug 26, 2026 at 10:27 AM EST | Fact-checked by Margo Winton Parodi

Key Points

Construction demand rise boosts stocks of companies in housing and infrastructure.
Investors can explore diverse firms from suppliers to project managers.
Top stocks include Caterpillar, United Rentals, and Vulcan Materials.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Caterpillar (NYSE:CAT)	$377.8 billion	0.75%	Machinery
United Rentals (NYSE:URI)	$65.8 billion	0.73%	Trading Companies and Distributors
Vulcan Materials (FRA:VMC)	$29.8 billion	0.77%	Construction Materials
Nucor (NYSE:NUE)	$57.4 billion	0.88%	Metals and Mining
Fluor (NYSE:FLR)	$7.0 billion	0.00%	Construction and Engineering
NV5 Global (NASDAQ:NVEE)	N/A	N/A	Professional Services

Data as of Aug 27, 2026. Showing 6 of 6 total entries.

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1. Caterpillar

Caterpillar (CAT -0.73%) is the manufacturer behind some of the biggest vehicles on the planet. The company is the leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

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NYSE: CAT

Caterpillar

Premium Feature

Moneyball Superscore

80/100

Today's Change

(-0.53%) $-4.33

Current Price

$817.60

Key Data Points

Market Cap

$378B

Day's Range

$807.31 - $832.99

52wk Range

$410.51 - $1073.46

Volume

500K

Avg Vol

3.2M

Gross Margin

32.83%

Dividend Yield

0.75%

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When construction demand is booming, Caterpillar has many ways to win. The company sells heavy equipment for construction sites and 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 more equipment than what they have on hand. United Rentals (URI -1.10%) is the solution to that problem, offering a wide range of equipment from a network of 1,520 rental locations across North America and 80 locations around Europe, Australia, and New Zealand.

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NYSE: URI

United Rentals

Premium Feature

Moneyball Superscore

75/100

Today's Change

(-1.10%) $-11.66

Current Price

$1,046.00

Key Data Points

Market Cap

$66B

Day's Range

$1037.00 - $1058.71

52wk Range

$701.59 - $1179.18

Volume

44K

Avg Vol

489.8K

Gross Margin

35.71%

Dividend Yield

0.73%

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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.

The company pays a dividend and has a long history of returning excess cash to investors via share buybacks. United Rentals has reduced its shares outstanding by over 45% since 2012, 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 -0.01%) 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

Premium Feature

Moneyball Superscore

72/100

Today's Change

(-0.01%) $-0.03

Current Price

$273.71

Key Data Points

Market Cap

$35B

Day's Range

$270.25 - $274.60

52wk Range

$252.35 - $331.09

Volume

70.9K

Avg Vol

1.1M

Gross Margin

27.51%

Dividend Yield

0.75%

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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 425 aggregates facilities, 71 asphalt facilities, and 76 concrete sites is spread across the U.S., giving it nationwide exposure to construction activity and road building.

4. Nucor

Steel is the basic building block of a lot of heavy construction, and few companies are more efficient at producing steel than Nucor (NUE -0.59%). In the 1960s, the company revolutionized the steel manufacturing process, replacing the huge, inefficient blast furnaces traditionally used to blend metals with a cheaper process that melts scrap into usable steel bars.

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NYSE: NUE

Nucor

Premium Feature

Moneyball Superscore

73/100

Today's Change

(-0.27%) $-0.67

Current Price

$252.13

Key Data Points

Market Cap

$57B

Day's Range

$250.91 - $253.00

52wk Range

$131.32 - $280.11

Volume

126.1K

Avg Vol

1.6M

Gross Margin

15.44%

Dividend Yield

0.88%

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

5. Fluor

Fluor (FLR +2.35%) is a century-old engineering and construction company that has grown from humble beginnings in Southern California to a Texas-based multinational giant. Fluor offers a range of services, from project design and management through to construction.

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NYSE: FLR

Fluor

Premium Feature

Moneyball Superscore

51/100

Today's Change

(2.33%) $1.22

Current Price

$53.25

Key Data Points

Market Cap

$7.0B

Day's Range

$51.71 - $53.35

52wk Range

$39.33 - $57.93

Volume

267.9K

Avg Vol

2.6M

Gross Margin

-79.81%

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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.

How to buy construction stocks

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in construction stocks

This list consists of companies that do many different things, and, indeed, construction is a broad sector. But all these companies share exposure to commodity prices and business cycles. There are several reasons construction stocks are a worthy investment, as well as a few reasons to be cautious when choosing these companies.

Massive demand for residential and commercial properties: Between the need for more housing and the government's ambitious infrastructure renewal program, there should be a lot of business for construction companies in the years to come. Investors looking to focus specifically on residential demand may prefer housing stocks, since broader construction stocks offer exposure across multiple building segments. However, demand can slip during times of economic uncertainty in some sectors, especially those related to residential real estate.
Stable and predictable cash flows, but cyclical swings: Construction stocks don't tend to soar the way tech stocks do, but they do offer some stability to balance out higher-risk growth stocks. The companies behind them can also be victim to dramatic economic cycles if businesses or homeowners decide that it's too risky to spend more money on a new structure.
Barriers to entry: It requires substantial capital, equipment, and expertise to manage a construction site. That limits the ability of start-ups to gain share and provides some pricing power to the major construction companies.

Methodology: How these stocks were chosen

The stocks in this article were chosen using Foolish principles, with a long-term investment horizon in mind. In some cases, stocks may be included for completeness, especially if they are in a very niche area. This gives a potential investor a better overview of what's available.

The bottom line

Although construction stocks can be solid investments for long-term investors, they are also exposed to dramatic economic swings. Factors like international tariffs and global economic instability can affect these companies' bottom lines in unpredictable ways. However, if you're looking to pick a construction stock, consider these key factors when comparing options:

Company fundamentals: This includes backlog, revenue growth, management strengths, and total debt.
Industry trends: Spending patterns, material costs, and regulations could impact building.
Market positioning: This includes sheer size and scale, as well as geographic focus and specialization. Some geographies, such as the Sun Belt, tend to fuel faster growth.

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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.

6 Best Construction Stocks for 2026 and How to Invest