7 construction stocks to watch

The best construction stocks depend on your portfolio and investment goals—while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time.

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.

1. United States Lime-and-Minerals (USLM)
2. Caterpillar (CAT)
3. Summit Materials (SUM)
4. Granite Construction Incorporated (GVA)
5. Eagle Materials (EXP)
6. DR Horton (DHI)
7. EMCOR Group (EME)

Compare investment accounts that help you research stocks

The construction stocks 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.

Our picks for platforms with research tools

How to invest in construction stocks

1. Choose an online stock trading platform. Choose from our Top Picks above, use our comparison table below or jump straight to the best stock trading apps in Canada.
2. Sign up for an account. Provide your personal information and sign up.
3. Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
4. Choose the stocks you want to buy. Search for the stock by name or ticker symbol like GVA or USLM.
5. Place your order. Buy the stock. It's that simple.

Learn more about popular construction stocks

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 US stocks.

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1. 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.

• Previous close price: $93.85
• Market capitalization: $2,629,817,856
• 1 year performance: -63.00%
• P/E ratio: 24.2665

Buy USLM stock on CIBC Investor's Edge

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2. 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.

• Previous close price: $343.95
• Market capitalization: $162,496,872,448
• 1 year performance: 5.71%
• P/E ratio: 15.4125

Buy CAT stock on CIBC Investor's Edge

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3. 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.

• Previous close price: $52.49
• Market capitalization: $9,228,477,440
• 1 year performance: 24.24%
• P/E ratio: 61.7529

Buy SUM stock on CIBC Investor's Edge

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4. 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.

• Previous close price: $82.58
• Market capitalization: $3,586,829,312
• 1 year performance: 68.46%
• P/E ratio: 31.5191

Buy GVA stock on CIBC Investor's Edge

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5. Eagle Materials (EXP)

Eagle Materials Inc. , through its subsidiaries, manufactures and sells heavy construction materials and light building materials in the United States. It operates in four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard.

• Previous close price: $226.21
• Market capitalization: $7,465,742,848
• 1 year performance: -9.87%
• P/E ratio: 16.0429

Buy EXP stock on CIBC Investor's Edge

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6. DR Horton (DHI)

D. R. Horton, Inc.

• Previous close price: $126.81
• Market capitalization: $40,565,616,640
• 1 year performance: -13.06%
• P/E ratio: 8.9483

Buy DHI stock on CIBC Investor's Edge

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7. 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.

• Previous close price: $408.91
• Market capitalization: $18,594,201,600
• 1 year performance: 48.76%
• P/E ratio: 19.0191

Buy EME stock on CIBC Investor's Edge

Buy construction stocks from these online trading platforms

Compare special offers, low fees and a wide range of investment options among top trading platforms.

Note: The dollar amounts in the table below are in Canadian dollars.

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 - simple.

Read the full methodology

Related: Compare the best stock trading platforms in Canada

Bottom line

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. If you're new to investing or if it's been a while since you've taken a critical look at your investment accounts, compare brokers to make sure you're getting the best trading features for your needs.

Related: How to buy stocks in Canada

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.