Will Installed Building Products (IBP) Benefit from the Improvement in the Residential Market?

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities continue to rally in the third quarter, the period with double-digit YTD gains. Major US indices like Russell 1000®, Russell Midcap®, and Russell 2000® reached record highs in the period. In the quarter, the fund’s Investor Class fund ARTSX returned 8.69%, Advisor Class fund APDSX posted a return of 8.75%, and Institutional Class fund APHSX returned 8.73%, compared to a return of 12.19% for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as Installed Building Products, Inc. (NYSE:IBP). Installed Building Products, Inc. (NYSE:IBP) engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products. The one-month return of Installed Building Products, Inc. (NYSE:IBP) was -8.20%, and its shares gained 18.29% of their value over the last 52 weeks. On November 17, 2025, Installed Building Products, Inc. (NYSE:IBP) stock closed at $244.76 per share, with a market capitalization of $6.639 billion.

Artisan Small Cap Fund stated the following regarding Installed Building Products, Inc. (NYSE:IBP) in its third quarter 2025 investor letter:

“We also added to Loar Holdings, Installed Building Products, Inc. (NYSE:IBP) and Madrigal Pharmaceuticals during the quarter. Installed Building Products (IBP), the second-largest insulation installer in the US, manages the full installation process—from material procurement to scheduling, logistics, multi-phase installation and inspection. We believe IBP is entering a strong profit cycle, supported by rising new home completions, geographic expansion, and increased revenue per project through cross-selling complementary products. We moved IBP to the CropSM prior to its earnings announcement, reflecting growing confidence that the worst of the residential market headwinds may be behind it. In our view, this shift allows both company-specific and industry-wide growth drivers to emerge more clearly. We added to the position again following the company’s quarterly results, as residential performance began to improve and new commercial market opportunities emerged—developments we believe will help extend the profit cycle.”

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Installed Building Products, Inc. (NYSE:IBP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 21 hedge fund portfolios held Installed Building Products, Inc. (NYSE:IBP) at the end of the second quarter, compared to 26 in the previous quarter.  Consolidated net revenue of Installed Building Products, Inc. (NYSE:IBP) for the third quarter of 2025 increased 2% to a record of $778 million compared to $761 million for Q3 2024. While we acknowledge the risk and potential of Installed Building Products, Inc. (NYSE:IBP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Installed Building Products, Inc. (NYSE:IBP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Installed Building Products, Inc. (NYSE:IBP) and shared the list of best housing stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.