In this article, we will discuss the 5 Best Building Materials Stocks to Buy for the Residential Recovery. For deeper discussion and analysis, read 7 Best Building Materials Stocks to Buy for the Residential Recovery.
5. Apogee Enterprises, Inc. (NASDAQ:APOG)
Short Percentage of Shares Outstanding: 2.52%
On May 28, Apogee Enterprises, Inc. (NASDAQ:APOG) announced that it entered into a definitive agreement to acquire Kalwall Companies from the Keller family for up to $115 million on a cash-free and debt-free basis, subject to customary closing conditions. The transaction includes an initial cash payment of $105 million at closing, along with a potential earnout of up to $10 million tied to financial performance through the end of the company’s fiscal 2027 third quarter. Management expects the acquisition to close during fiscal 2027’s second quarter and believes the transaction will enhance Apogee’s portfolio and expand its capabilities within the building products market.
On April 24, Apogee Enterprises, Inc. (NASDAQ:APOG) provided fiscal 2027 guidance, forecasting revenue in the range of $1.38 billion to $1.43 billion. The company’s outlook assumes approximately $10 million in interest expense, an adjusted effective tax rate of 26% to 27%, and capital expenditures between $35 million and $40 million, reflecting management’s expectations for continued investment in growth initiatives and operational execution.
Founded in 1949 and headquartered in Minneapolis, MN, Apogee Enterprises, Inc. (NASDAQ:APOG) designs and fabricates commercial glass, aluminum framing, and installation services for building exteriors. The stock gains residential recovery exposure through its Apogee Renovation segment and high-rise multi-family housing projects requiring advanced glass and curtainwall envelope solutions.
4. CRH plc (NYSE:CRH)
Short Percentage of Shares Outstanding: 1.94%
On June 16, CRH plc (NYSE:CRH) announced the election of Tony Will to its Board of Directors, effective July 1, 2026. Will previously served as President, Chief Executive Officer, and board member of CF Industries Holdings, bringing extensive leadership and industrial sector experience to the company’s board.
Earlier, on May 26, CRH plc (NYSE:CRH) announced the appointment of Danilo Juvane as Head of Investor Relations. Juvane brings more than 25 years of capital markets experience, most recently serving as Vice President of Corporate Development, Investor Relations, and ESG at The Williams Companies. In his new role, he will oversee shareholder engagement and investor communications while helping articulate CRH’s strategic priorities and long-term value creation initiatives. He succeeds Tom Holmes, who is transitioning to a senior leadership role within the company’s strategy organization.
Founded in 1970 and headquartered in Dublin, Ireland, CRH plc (NYSE:CRH) is one of the world’s largest providers of building materials and construction solutions. The company supplies a broad portfolio of products and services across infrastructure, non-residential, and residential construction markets.
3. Lowe’s Companies, Inc. (NYSE:LOW)
Short Percentage of Shares Outstanding: 1.77%
On June 11, Lowe’s Companies, Inc. (NYSE:LOW) announced a new multi-year partnership with Live Nation aimed at providing MyLowe’s Rewards and MyLowe’s Pro Rewards members with exclusive live entertainment experiences. Through the collaboration, members will gain access to a variety of concert-related benefits, including discounted children’s tickets with the purchase of an adult lawn ticket, complimentary lawn chair rentals at select events for eligible members, and sweepstakes opportunities to win free concert tickets throughout the year. The initiative is designed to enhance customer engagement by extending the value of Lowe’s loyalty programs beyond traditional retail offerings and creating additional benefits for members.
On May 29, Lowe’s Companies, Inc. (NYSE:LOW) board of directors approved a quarterly cash dividend of $1.25 per share, payable on August 5 to shareholders of record as of July 22. The new dividend represents a 4% increase from the company’s previous quarterly payout of $1.20 per share, reflecting management’s continued commitment to returning capital to shareholders and confidence in the company’s financial position and cash flow generation capabilities.
Founded in 1921 and headquartered in Mooresville, North Carolina, Lowe’s Companies, Inc. (NYSE:LOW) is a premier home improvement retailer. It serves both DIY homeowners and contractors by providing crucial building materials, appliances, and trade services to support home renovations, repairs, and property value appreciation.
2. The Home Depot, Inc. (NYSE:HD)
Short Percentage of Shares Outstanding: 1.21%
On May 20, UBS analyst Michael Lasser reduced his price target on The Home Depot, Inc. (NYSE:HD) to $430 from $450 while maintaining a Buy rating on the shares. Despite the lower target, the continued Buy recommendation reflects the firm’s confidence in the company’s long-term competitive position and its ability to navigate current market conditions within the home improvement sector.
On the same day, Mizuho lowered its price target on The Home Depot, Inc. (NYSE:HD) to $385 from $415 while reiterating an Outperform rating on the stock. The revision followed the company’s latest earnings report and reflects updated financial assumptions, though the firm continues to view Home Depot favorably relative to its peers and expects the company to deliver solid performance over the long term.
Founded in 1978 and headquartered in Atlanta, Georgia, The Home Depot, Inc. (NYSE:HD) provides building materials, home decor, and lawn products, along with tool rentals and installation services for DIY enthusiasts and professionals. It supplies contractors and homeowners with the essential materials required for home repairs, remodeling, and renovations.
1. Lennar Corporation (NYSE:LEN)
Short Percentage of Shares Outstanding: 0.22%
On June 15, RBC Capital reduced its price target on Lennar Corporation (NYSE:LEN) to $85 from $88 while maintaining an Underperform rating on the shares. The firm cited the company’s weaker-than-expected third-quarter guidance and continued softness in housing demand, leading it to lower its fiscal 2026 and 2027 earnings-per-share forecasts by 12% and 10%, respectively. RBC also noted that recent improvements in sales incentives may prove difficult to sustain given ongoing pricing pressures and the need for base price reductions, while expected gains from product mix and cost initiatives are projected to provide only modest sequential margin improvement.
On the same day, Barclays lowered its price target on Lennar Corporation (NYSE:LEN) to $79 from $80 and reiterated an Underweight rating on the stock. The firm expressed concerns regarding the company’s land banking strategy, noting that option-related costs could pose a longer-term risk as they are recognized over time. Barclays also indicated that it anticipates additional downward revisions to earnings estimates in the periods ahead.
Founded in 1954 and headquartered in Miami, Florida, Lennar Corporation (NYSE:LEN) provides residential mortgage, title, and financial services. It actively fuels residential recovery by offering adaptable, cost-effective new homes and buyer financing, driving market demand and housing supply growth across the United States.
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READ NEXT: 10 Under-the-Radar AI Stocks to Buy in 2026 and 7 Best “Land Owner” Stocks to Buy for Hard Asset Value.
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