On Wednesday’s episode of Mad Money, host Jim Cramer pointed to the third quarter’s strongest performing stocks as a potential indicator for how the market might shape up during the remainder of the year.
“You can tell an awful lot about a market by looking at the winners and losers of a quarter that was just put to bed. Right now, the news of the day is all about that government shutdown and its implications. But to me, the shutdown may not be all that meaningful to the stocks you own.”
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Cramer acknowledged that while historical trends do not always repeat, they can provide useful patterns. He explained that the stocks that outperformed in the third quarter often attract fresh attention in the fourth quarter from institutional investors, especially money managers looking to adjust portfolios to highlight successful positions ahead of year-end reporting.
“Here’s the bottom line: I learned a long time ago, don’t fight the tape. If you want to embrace the tape, I think the third quarter’s winners are a terrific place to be. I’m betting most of these can keep rallying through the end of the year, but the biggest gains may, indeed, have already been made.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on October 1. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer on Q3 Noteworthy Stocks: 10 Stocks in Focus
10. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 68
Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the noteworthy Q3 stocks Jim Cramer was focused on. Highlighting losers that could make a comeback, Cramer mentioned the stock and said:
“And how about the biggest losers for the quarter? As I scrutinize the list, I see a couple that could make a comeback. Chipotle’s the best of these losers, having been hammered relentlessly like many other restaurant chains. The current numbers are indeed nothing to write home about, but this company has a habit of bouncing back after management gets it right. Down 30% last quarter, Chipotle seems like a decent reversal candidate.”
Chipotle Mexican Grill, Inc. (NYSE:CMG) runs a network of restaurants serving burritos, bowls, tacos, quesadillas, salads, and sides with drinks. Cramer mentioned the company during the September 10 episode and said:
“Oh boy, alright. There’s a lot of fundamental stories going on in the restaurant industry that is making it so it’s hard to buy any of these, and a lot has to do with the price of beef. I keep thinking that cattle is going to break down. That is a big cost that they have, and you know what? I thought it was going to break. I talked to my friend Carley Garner; she felt that it’s going to break, but what happened? This thing, which goes into so much of Chipotle’s food, is just no quit. So until cattle really breaks, I’m going to have to say, let’s just keep it on the radar screen.”
9. Invesco Ltd. (NYSE:IVZ)
Number of Hedge Fund Holders: 41
Invesco Ltd. (NYSE:IVZ) is one of the noteworthy Q3 stocks Jim Cramer was focused on. Cramer mentioned the stock during the episode and commented:
“Finally, there’s a stock that makes a ton of sense given how well the market’s doing, and that’s Invesco. That’s a money management firm with a stock that’s up 45% for the quarter.”
Invesco Ltd. (NYSE:IVZ) is an investment management firm serving clients through mutual funds, ETFs, private funds, and customized equity and fixed income portfolios. On October 2, BofA raised its price target on the company stock to $25 from 23 while maintaining a Neutral rating. The firm noted that price targets are being increased across all traditional asset managers under coverage in a preview for the group. In addition, it should be noted that TD Cowen’s Bill Katz raised the price target for Invesco Ltd.’s (NYSE:IVZ) stock on September 18 and maintained a Buy rating.
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