During the episode of Mad Money aired on Wednesday, Jim Cramer broke down what he considers some of the most effective practices for buying stocks.

“I want to pull back the curtain and show you how a professional looks for stocks to buy and knows what to sell. There’s no magic. There’s no hidden talent. Just a bunch of disciplines, disciplines that can help you try to make mad money if you master them.”

READ ALSO: 21 Stocks on Jim Cramer’s Radar and Jim Cramer’s Thoughts on These 13 Stocks.

Cramer stressed the importance of conducting thorough research before committing to any stock purchase. He emphasized that investors must truly believe in the stock they are buying, even if that belief is rooted in skepticism, so long as they are convinced the price will rise and that the stock deserves that rise. He warned, however, that conviction is not enough on its own when a stock has pulled back from its high. If the decline is unrelated to the company’s actual business, which he described as an “extraneous” reason, it may present an opportunity.

“Be certain you’re dealing with a momentarily damaged stock and not a troubled company that’s going down, down, down. How can you tell the difference between a damaged company and a damaged stock? The fundamentals haven’t changed, the stock probably hasn’t fallen from grace. It’s pulled back for mechanical reasons, profit taking, or some panic in the market in general.”

Cramer pointed out that modern markets are heavily influenced by highly levered hedge funds, which treat stocks like commodities. He said that such behavior leads to irrational sell-offs that can drag high-quality stocks down for reasons unrelated to their financial health. Still, he cautioned that once a stock’s fundamentals begin to shift, if the qualities that originally made it appealing no longer exist, then it is no longer suitable for inclusion in a portfolio.

Our Methodology

For this article, we compiled a list of 43 stocks that Cramer was bullish on during episodes of Mad Money aired between April 24 and May 2. We narrowed the list to 10 stocks that were most favored by analysts. We listed the stocks in ascending order of their average analyst price target upside as of May 8. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q4 database of over 1,000 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).

10 Jim Cramer Stocks with Huge Upside Potential

10. Apple Inc. (NASDAQ:AAPL)

Average Price Target Upside: 20.61%

Number of Hedge Fund Holders: 166

Celebrating Mad Money’s 20th anniversary, Cramer highlighted Apple Inc. (NASDAQ:AAPL) among the 20 stocks that had the biggest gains over the past 20 years and said:

“Fourth place: Apple, up more than 14,500% since we went on air. The great thing about Apple is these gains were totally gettable, come on. This was the most obvious story in America for years and years. It’s much harder to own here because it’s under fire from the White House for sourcing most of its merchandise from China for the cell phones. But it’s still a terrific illustration of the fact that you don’t need to be a genius to pick winners in this business.”

Apple (NASDAQ:AAPL) designs and sells a variety of consumer electronics, including smartphones, computers, tablets, wearables, and accessories. The company also offers subscription services like Apple Music, Apple TV+, and Apple Arcade, and operates platforms such as the App Store and Apple Pay. On May 6, BofA analyst Wamsi Mohan reported that Apple App Store revenues for fiscal Q3, after 35 days, rose 11% year-over-year to $3.3 billion, based on data from SensorTower. For April, global App Store revenue grew 12% year-over-year. The analyst kept a Buy rating and a $235 price target on Apple shares.

9. Phillips 66 (NYSE:PSX)

Average Price Target Upside: 20.98%

Number of Hedge Fund Holders: 47

Answering a caller’s question about Phillips 66 (NYSE:PSX) on May 2, Cramer said:

“Alright, let’s just view it as an investment situation. It’s got a 4.4% yield. We’re running short of refiners. I think that the stock has been overly punished. It’s been going down as if it’s an oil stock. It is not an oil stock, it’s a refiner, and I would be a buyer of PSX, and I’ve been waiting to say that for some time, but it’s down enough that I think it’s time.”

Phillips 66 (NYSE:PSX) is an energy firm focused on manufacturing and logistics. It manages the transportation, storage, refining, and marketing of petroleum products and also produces and sells chemicals. On April 28, TD Cowen reduced its price target on PSX stock to $114 from $127 and maintained a Buy rating on the stock. The firm updated its model and noted that earnings were weaker than expected, with refining results as expected due to maintenance, while RD and Marketing fell short.

8. CAVA Group, Inc. (NYSE:CAVA)

Average Price Target Upside: 21.74%

Number of Hedge Fund Holders: 47

On April 29, Cramer was asked about CAVA Group, Inc. (NYSE:CAVA), and he replied:

“I like it here. I like it here for the long term. Why? Because I think the Mediterranean is a kind of food that can be like Chipotle, it can be the previous, you know, just the way Chipotle had a big run. I think Cava can too.”

CAVA (NYSE:CAVA) operates a fast-growing chain of restaurants offering Mediterranean-style cuisine nationwide. On April 23, Bernstein analyst Danilo Gargiulo upgraded CAVA to Outperform from Market Perform while keeping the price target at $115. The firm noted that the 30% drop in shares this year, despite no significant changes to the company’s long-term outlook, prompted a reassessment of the risk/reward balance ahead of Q1 earnings. The analyst believes the company is well-positioned to grow in a slowing market.

Bernstein pointed out that with a cautious 6%-8% same-store sales forecast for 2025, which includes expected slowdown in the second half, strong sales so far this year, and several opportunities to gain market share, CAVA (NYSE:CAVA) stands out as one of the few consumer companies likely to maintain its guidance despite broader uncertainties. The firm sees potential for the company to achieve 10% same-store sales growth and believes it will prove more resilient than some investors expect.

7. Tyler Technologies, Inc. (NYSE:TYL)

Average Price Target Upside: 21.90%

Number of Hedge Fund Holders: 44

Last week, discussing how Tyler Technologies, Inc. (NYSE:TYL) is among the winners of the last 20 years, Cramer commented:

“In 12th place is Tyler Technologies, up 7,197%. Now here we go again. These guys provide all sorts of software products for public sector customers, think enterprise resource planning, productivity tools, data platforms, cybersecurity solutions, and much, much more.

Now these guys now dominate the public sector software space, they have for a couple years now. A very durable business, company just reported a beat and raise quarter last week. But because their bookings were a little soft, the stock pulled back a bit. I think it could be an excellent buying opportunity.”

Tyler Technologies (NYSE:TYL) delivers software and tech services designed for the public sector. The company’s offerings include cybersecurity, financial systems, public administration, licensing, property tax, education, courts, and health services. On April 25, Baird reduced its price target on TYL stock to $700 from $785 and kept an Outperform rating on the stock. The firm adjusted its model after Q1 results, which showed some mixed signals, but it still holds a positive outlook.

6. Amazon.com, Inc. (NASDAQ:AMZN)

Average Price Target Upside: 25.28%

Number of Hedge Fund Holders: 339

Last week, Cramer pointed out that Amazon.com, Inc. (NASDAQ:AMZN) stock has big gains over the last 20 years, as he said:

“Next, we’re entering cream of the crop territory. In sixth place, we find a Magnificent Seven named Amazon, up more than 10,700% gain in the Mad Money era. When this show began, Amazon was a lowly survivor of the Dot-com bust, growing its e-commerce business nicely, but still barely profitable. Since then, though, it’s grown into a colossus with its sprawling e-commerce business and a bountiful cloud infrastructure division.

Now, as a mega-cap tech giant, Amazon has all sorts of exciting new growth opportunities, from a still underappreciated advertising business to the Prime membership program that’s brought the company into the streaming media space. Much, much more. Amazon reports on Thursday night and while I’m sure there’ll be a lot of talk about tariffs of course, and the state of the consumer, this is one of the few retailers with enough bargaining power to truly mitigate these new import duties and I still like it for the long haul [buy, buy, buy].”

Amazon (NASDAQ:AMZN) is a well-known name and provides products and services related to e-commerce, advertising, and subscription-based services. On May 6, Tigress Financial raised its price target on AMZN to $305 from $290 and maintained a Buy rating after the Q1 report.

The firm believes Amazon (NASDAQ:AMZN) is in a strong position to handle different economic and consumer spending conditions due to its solid e-commerce and fulfillment operations. The analyst highlighted that the company is pushing forward with artificial intelligence to support revenue growth, improve cash flow, and boost shareholder value.

5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) 

Average Price Target Upside: 25.71%

Number of Hedge Fund Holders: 186

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was mentioned during April 24’s episode as Cramer remarked:

“Taiwan Semiconductor is so low. I have to tell you… Look, I have tremendous conviction that it’s very difficult to politically… say that we will protect Taiwan Semi. I will say this, that is one of the greatest manufacturers in the world, and anybody who thinks that Taiwan Semi should be this low, this cheap is just not a believer in AI, and I am a believer in AI. There we go.”

Taiwan Semiconductor Manufacturing (NYSE:TSM) manages the production, packaging, testing, and sales of integrated circuits and other semiconductor products. On April 21, Barclays analyst Simon Coles cut the price target on TSM to $215 from $255 and kept an Overweight rating on the stock.

The analyst mentioned that Taiwan Semiconductor Manufacturing (NYSE:TSM) shares already reflect a potential slowdown and now seem more appealing. The firm noted that fiscal 2025 guidance was unchanged, suggesting a softer second half, which it sees as reasonable.

4. Arm Holdings plc (NASDAQ:ARM)

Average Price Target Upside: 26.49%

Number of Hedge Fund Holders: 43

A caller inquired about Arm Holdings plc (NASDAQ:ARM) during April 25’s episode, and here’s what Cramer had to say:

“Oh no… I want you to stay in it. Rene Haas is doing a great job. I think that this whole semiconductor group has been oversold. It will bounce, and when it bounces, you want to trim back because it is expensive. That’s fine. Do not sell it here.”

Arm Holdings (NASDAQ:ARM) focuses on developing CPU designs and licensing the related technology. On May 8, Guggenheim cut its price target on ARM to $147 from $180 and maintained a Buy rating on the stock. The analyst described the quarter as mixed, with total revenue coming in slightly ahead of expectations.

Arm Holdings (NASDAQ:ARM) chose not to provide full-year guidance. The company does not see direct risk from tariffs but pointed to possible indirect effects in the markets it serves. The firm lowered the target to reflect ongoing geopolitical uncertainty that may continue over the next year.

3. Salesforce, Inc. (NYSE:CRM)

Average Price Target Upside: 34.20%

Number of Hedge Fund Holders: 162

Highlighting that Salesforce, Inc. (NYSE:CRM) took the 14th place on his list of stocks with the biggest gains over the past 20 years, Cramer stated:

“Next, in 14th place is one of my all-time favorites, and that’s Salesforce, up 6,738%. This company started as a customer relations management software play, basically invented the cloud software strategy, and now is one of the largest and most successful enterprise software companies on the planet. Salesforce now offers an entire suite of products spanning sales, marketing, customer service, and data analytics. And it always seems to be at the leading edge of whatever big trend is happening in software, including right now with their Agentic platform that harnesses AI, okay, kind of like a a robot that you would speak to when you’re trying to figure out exactly who you want to get to in a company.

More impressive, the stock still made the list even though it’s down 28% from its highs in December. We just had Salesforce co-founder and CEO Marc Benioff on the show last week. He sounded as confident as ever. I say you doubt this man at your own peril. He did the same thing in the fall of 2008 when the financial crisis was obliterating the stock market. That turned out to be an incredible buying opportunity. I know some of you think I’ve been sticking around too long on this company. I think its Agentforce program could be dramatically understated for the growth prospects it’s going to bring the company. It could blow out the numbers, okay? I’m not sure which quarter’s going to do that, but I swear by this Agentic. It makes too much sense. Don’t leave the stock.”

Salesforce (NYSE:CRM) offers one platform that supports sales, customer service, marketing, analytics, and e-commerce. The company’s tools help businesses handle customer relationships and manage daily tasks more effectively. On April 23, Piper Sandler lowered its price target on CRM to $315 from $400 and kept an Overweight rating on the stock. The firm reduced estimates across the cloud applications and analytics space due to growing short-term challenges from tariffs, policy shifts, and issues tied to AI adoption.

The analyst said that software companies are under pressure as investor confidence fades, and pointed to slower industry growth for a fourth year and signs that excitement around AI may be declining. Piper noted that valuation multiples have dropped to a seven-year low, though the direct effect of tariffs on software models remains limited.

2. Reddit, Inc. (NYSE:RDDT)

Average Price Target Upside: 48.52%

Number of Hedge Fund Holders: 87

On April 24, when a caller asked about Reddit, Inc. (NYSE:RDDT), Cramer said:

“Well… Oh man, Reddit. I think Reddit is a very good stock. It came down way too much because there were, it was a short squeeze, and then it evaporated. But I think management, Huff’s (CEO Steve Huffman) doing a great job. I would be a buyer.”

Reddit (NYSE:RDDT) operates a popular platform where people post content, join conversations, and participate in topic-focused communities. On May 5, Seaport Research raised its rating on RDDT stock to Buy from Neutral and set a price target of $165.

The analyst noted that Reddit (NYSE:RDDT) posted strong Q1 revenue and EBITDA. Shares dropped after Q2 user growth slowed due to changes in Google search. The firm sees the Google impact as a short-term issue. It still expects steady user growth over time and sees potential for strong gains in revenue and monetization.

1. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Average Price Target Upside: 51.41%

Number of Hedge Fund Holders: 68

Last week, recounting stocks with the most gains over the past 20 years, Cramer discussed Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) as he said:

“Rearrange Repligen’s ticker just a bit and you’ll get the ninth best stock of the Mad Money era, Regeneron Pharma, that’s up more than 9,400%. Now this one’s special to me because Regeneron’s co-founder and CEO, Dr. Len Schleifer, he was one of the first guests who ever came on the show back in April 12th, 2005. The stock was trading at less than five bucks a share. Now it’s at $568, and that’s after 6.87% beating today.

Regeneron is arguably the most innovative biopharma company I’ve seen in the last two decades. But the stock’s come in significantly over the past eight months or so, falling more than 50% from its highs. Wall Street’s trying to game the impact of Regeneron first big patent cliff as they lost protection for their EYLEA, that’s a blockbuster treatment for wet age-related macular degeneration. In fact, when Regeneron reported this morning, numbers came up a little short because of an EYLEA miss, which is why the stock got clobbered today.”

Regeneron (NASDAQ:REGN) creates and sells medications for various diseases. The company works on discovering new treatments for multiple medical issues. On April 30, Truist revised its price target for REGN, from $975 to $940 while maintaining a Buy rating on the stock. The firm explained that the adjustment shows a more conservative view on Eylea sales in the near term.

Despite the tempered expectations around Eylea, Truist pointed out that Regeneron (NASDAQ:REGN) is still delivering growth on both revenue and earnings fronts, especially driven by the performance of Dupixent (Dupi) and Libtayo. According to the analyst, while the market’s current attention may be centered on the slowing momentum of Eylea, the company’s broader financial outlook remains positive thanks to contributions from its other key products.

While we acknowledge the potential of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than REGN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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