The broader Zacks Construction sector is very attractive at the moment boasting 20 stocks that currently sport a Zacks Rank #1 (Strong Buy). One of the standout industries in the space is the Building Products-Home Builders Industry which is currently in Zacks top 2%. The collective total return (including dividends) of the industry is +35% year to date to easily top the S&P 500’s +14% and even the Nasdaq’s +27%. Here is a look at some of the highly-ranked stocks in the industry that investors may want to consider right now. Image Source: Zacks Investment Research Meritage Homes ( MTH Quick Quote MTH - Free Report) ): As one of the leading designers and builders of single-family homes, Meritage Homes stock is sticking out with earnings estimates soaring throughout the quarter. Fiscal 2023 EPS estimates have climbed 21% in the last two months to $15.57 per share compared to estimates of $12.84 a share 60 days ago. More intriguing, FY24 earnings estimates have risen 18% serving as a further catalyst for more upside in Meritage stock which currently trades at $129 a share. Image Source: Zacks Investment Research MDC Holdings ( MDC Quick Quote MDC - Free Report) ): Investors searching for growth and value may have a solid option with MDC Holdings' stock. Easing inflation is strengthening the business environment for MDC which is engaged in homebuilding and financial services including mortgage operations. Specifically, MDC acquires, develops, constructs, and sells single-family detached homes to first-time and move-up buyers. Stabilizing interest rates should bold well for MDC following one of its more profitable years with net income at $562 million in 2022 or $7.67 per share. Trading under $50 a share, MDC stock looks like an attractive option to capitalize on increasing home ownership among Generation Z and younger Millennials. MDC’s 4.53% dividend yield is very attractive for income seekers as it is well above the industry average of 0.44% and the S&P 500’s 1.48% average. Image Source: Zacks Investment Research Toll Brothers ( TOL Quick Quote TOL - Free Report) ): From a valuation standpoint, Toll Brothers is one of the more attractive companies in the thriving Building Products-Home Builders Industry. Toll Brothers has a niche in the industry as a builder of single-family detached and attached home communities, master-planned luxury residential resort-style golf communities, and urban housing communities. With earnings estimates noticeably higher for FY23 and FY24, Toll Brothers stock still trades at 7.1X forward earnings. At $74 a share, Toll Brothers stock is trading 83% below its decade high of 43.1X earnings and at a 31% discount to the median of 10.7X. Additionally, Toll Brothers stock offers a nice discount to the industry average of 9.1X and is nicely beneath the S&P 500’s 19.9X. Image Source: Zacks Investment Research Bottom Line Easing inflation and stabilizing interest rates are starting to strengthen the construction sector with many homebuilders poised to benefit. In addition to their Zacks Rank #1 (Strong Buy), these stocks also have an overall “A” VGM Style Scores grade for the combination of Value, Growth, and Momentum. Other options to consider among the top-rated Building Products-Home Builders Industry are D.R. Horton ( DHI Quick Quote DHI - Free Report) ) and PulteGroup ( PHM Quick Quote PHM - Free Report) ).