Jim Cramer, the host of Mad Money, addressed how investors should approach short-term market gains and cautioned against mischaracterizing these upswings as “bear market rallies.”
“The most important lesson for dealing with a major short-term move higher is that you always have to work hard to prepare yourself for the future. Otherwise, you’ll end up letting some great opportunities to sell pass you by. That’s right. Just as we can’t give in to despair when the market’s down, you… don’t want to give in to euphoria and buy, buy, buy when the market’s roaring. That’s not when you should buy. It is when you should be taking some chips off the table.”
READ ALSO: 11 Stocks on Jim Cramer’s Radar and Jim Cramer Shed Light on These 14 Stocks.
Cramer also pointed out that managing emotions works both ways. He said that just as it is important to remember the positive days when the market is falling to stay grounded, it is equally necessary to keep the bad days in mind during a rally. He warned against ignoring the opportunity to trim positions simply because of a long-term commitment to a stock or the market as a whole.
“Here’s the bottom line: When the stock market’s had a big short-term run, short-term, don’t get carried away by the optimism. Instead, keep your head on straight, check your emotions, focus on the long term, and think about ringing the register, especially in stocks that might be getting too high.”
Our Methodology
For this article, we compiled a list of over 80 stocks that Jim Cramer commented on during episodes of Mad Money aired between August 7 and August 14. We selected the 10 stocks from our list that analysts have recently covered. We listed the stocks in ascending order of their average analyst price target upside as of August 25. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q2 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).
10 Stocks on Jim Cramer’s and Analysts’ Radar
10. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 159
Average Upside Potential: 0.84%
UnitedHealth Group Incorporated (NYSE:UNH) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 20, Morgan Stanley reduced its price target on UNH shares to $325 from $342 and maintained an Overweight rating. The firm revised its estimates to reflect a longer turnaround timeline. It noted that its illustrative path to 2027 EPS suggests potential upside to current Street expectations, while highlighting uncertainties related to Medicare Star ratings and possible changes in regulation and reimbursement.
UnitedHealth Group Incorporated (NYSE:UNH) provides health benefits, care services, pharmacy programs, and data solutions to a wide range of customers, including individuals, employers, healthcare providers, and government entities. The company offers health coverage, care delivery, consulting, software, and pharmacy management services. It should be noted that Cramer, on August 13, mentioned that the company can make a comeback. He stated:
“I think UnitedHealth’s going to work here… I think it’s going to work. I really do. Look, I’m not a believer. I don’t like the fact that they had shenanigans, but I will say this: I think that the company is run by a very good CEO. It could come back.”
9. Lamb Weston Holdings, Inc. (NYSE:LW)
Number of Hedge Fund Holders: 45
Average Upside Potential: 8.85%
Lamb Weston Holdings, Inc. (NYSE:LW) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 20, JPMorgan assumed coverage of Lamb Weston stock with a Neutral rating and set a price target of $57, lowered from $66. The firm initiated coverage on 24 stocks across food producers, food retail, and agricultural products. The analyst noted that food producers are under pressure from slower center store growth and market share declines. Food retailers are expected to benefit from ongoing inflation. The firm also stated that agricultural product companies may be through the worst of their earnings pressures, though a recovery depends on pending U.S. biofuels regulations.
Lamb Weston Holdings, Inc. (NYSE:LW) produces and markets frozen potato products under its own, licensed, and customer brands. Lastly, replying to a caller’s question about the stock on August 7, Cramer remarked:
“Lamb Weston, man… I gotta tell you, I think it’s interesting because there’s a lot of people circling it, but I hate to buy a stock just because I’m hoping for a takeover. So I’m going to steer you away from that stock and from that group, which is really a nightmare.”
8. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 93
Average Upside Potential: 9.01%
The Home Depot, Inc. (NYSE:HD) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 21, Bernstein raised its price target on HD shares to $403 from $398 and maintained a Market Perform rating. The analyst noted that the company held its fiscal 2025 guidance despite missing comparable sales expectations in the second quarter. The firm stated that investors appear to be regaining interest in the home improvement sector amid expectations for interest rate cuts, but it does not anticipate a near-term recovery in demand.
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer that supplies building materials, décor, lawn and garden products, and maintenance items. The company also provides installation services, tool rental options, and digital platforms for homeowners, professionals, and contractors. Additionally, on August 11, the company was mentioned by Cramer during Mad Money’s episode, as he said:
“We have to ask ourselves, has something changed? If something has changed and it’s really dramatic, then we will pay up. Jeff and I talked a bunch of times about whether we should pay it for Home Depot or not because we didn’t catch the bottom. We bought some, and then it flew up, and I’m a big believer that we’re gonna get rate cuts, and we said buy some Home Depot. So, I think that the thing that changed was that we knew we were going to get the rate cut from the CPI. So yes, if something changes, you can violate, but it has to change. It can’t just be because you say, ooh, I really like that.”
7. Symbotic Inc. (NASDAQ:SYM)
Number of Hedge Fund Holders: 17
Average Upside Potential: 10.32%
Symbotic Inc. (NASDAQ:SYM) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 25, DA Davidson downgraded SYM shares to Neutral from Buy and raised the price target to $47 from $35. The firm lowered its revenue and adjusted EBITDA estimates for fiscal 2026, citing a slowdown in near-term revenue growth and current valuation. It stated that organic sales are expected to reaccelerate in fiscal 2027 as system deployment rates increase.
Symbotic Inc. (NASDAQ:SYM) creates automation systems that optimize warehouse operations by automating the movement and processing of pallets and cases. The company’s technology is used to improve efficiency in the early stages of the supply chain. Moreover, the bearish sentiment was also reflected in Cramer’s comment as he called it a “complicated story” on August 11 when he said:
“So, what do we want to make of this stock now that it’s gotten hit? I’m a bit torn on this one. I like the technology and the growth trajectory. I just wish Symbotic were a cleaner story. I’m not super worried about the concentrated Walmart business, but at the end of the day, it’s a problem when you get 87% of your sales from a single company. It’s also tough to value the stock. If we use the consensus earnings estimate for 2026, then the stock’s trading at over 150 times next year’s numbers. If you use the 2028 estimates, Symbotic looks a little more reasonable, just over 25 times that number, but that’s three years out.
If you want to use a price-to-sales multiple, Symbotic trades at about 14 times this year’s… sales, and 14 times sales is far from cheap, frankly. Now I wish the stock had more of a reason to, you know, more than triple. I don’t know why it tripled from its April lows… That bothers me. A lot of this just feels like Symbotic can’t lose in a market that loves AI or automated related, anything robotic. As long as that dynamic continues, the stock’s a winner. But I don’t like to recommend stocks for that reason. At the end of the day, I just don’t feel comfortable enough with this complicated story to stick my neck out for Symbotic.
If you’re thinking long term and if you fully understand the risks and try to understand that short position, the concentration with Walmart, you got my blessing to speculate on this one. Just keep in mind, you’re speculating. Here’s the bottom line: Symbotic’s a cool company, and if you’re comfortable speculating, then you can put a small position on here and potentially buy more on weakness. But overall, I think there are more straightforward ways to speculate this market, but it is cool, I’m not denying that.”
6. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
Average Upside Potential: 12.37%
NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 25, Baird raised its price target on NVDA shares to $225 from $195 and maintained an Outperform rating ahead of the company’s earnings report on Wednesday. The firm raised its revenue and earnings estimates, citing a “significant acceleration” in GB200 sell-through shipments during July. The firm expects shipment momentum to continue, with xAI shipments concentrated in fiscal fourth quarter. Furthermore, as per the analyst, GB300 remains on schedule for an initial launch in late September and is expected to deliver a substantial performance increase over GB200.
NVIDIA Corporation (NASDAQ:NVDA) develops computing, graphics, and AI technologies for industries such as gaming, data centers, and automotive. The company offers products like GPUs, cloud-based services, and AI platforms. It is worth noting that on August 11, Cramer said:
“This morning, we learned that the US government is planning to take a 15% cut on all the AI chips that these two companies are currently selling to China. For NVIDIA, that means a 15% cut on the H20, which was their cutting-edge chip for AI a few years ago, something they were previously banned from selling in the PRC. The president then said that NVIDIA might be getting approval to sell a next-generation chip to the Chinese, something, wow, more like their current version, Blackwell, except it won’t have as much computing power. We didn’t expect that Blackwell could be allowed in China. This was a big deal that the market completely just ignored. That was a mistake. President had asked for 20% cut of revenues, but NVIDIA CEO Jensen Huang bargained him down to 15%. That was good…
The cost of shareholders for the NVIDIA deal, as we told investing club members today, NVIDIA was selling about $8 billion worth of chips to China every quarter prior to the previous export restriction. A 15% haircut would equate to a little more than $1 billion per quarter or about $5 billion per year. Hey, that’s a big number for most companies, but not for NVIDIA. They were desperate to get this China business back by any means necessary…
From the perspective of big business, this is a great deal. Under the previous export controls, NVIDIA and AMD couldn’t sell these ships to China at all. If they can get that business back in exchange for a 15% cut, that’s a win for their shareholders.”
5. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
Average Upside Potential: 18.36%
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 20, Morgan Stanley increased the price target on PANW shares to $210 from $205 and kept an Overweight rating. The firm noted that the company’s fourth-quarter results surpassed expectations and introduced a free cash flow target exceeding 40% for fiscal year 2028. This target was 200 to 300 basis points above expectations and described as “encouraging” amid concerns about dilution from CyberArk.
Palo Alto Networks, Inc. (NASDAQ:PANW) offers cybersecurity solutions focused on network, cloud, and security operations for threat prevention, detection, and automated response. The company provides virtual firewalls, threat intelligence, and professional services. Similar to the analyst, Cramer was bullish on the stock. On August 12, when a caller inquired if Cramer would recommend investing in the stock long term, he replied:
“Yes, I do. I think that Nikesh Arora is being wildly misinterpreted by his… you know, he just bought CyberArk, which is a company that I’ve liked for like, I don’t know, since we started the show, no, maybe 15 years. And he bought it, and all these people are saying, oh, it must mean something’s wrong. Are you kidding? Hey, by the way, the stock is finally down ahead of the quarter, which I think is actually going to help us. We own it for the Charitable Trust.”
4. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 66
Average Upside Potential: 22.06%
Equinix, Inc. (NASDAQ:EQIX) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 20, Barclays analyst Brendan Lynch increased the price target for EQIX to $804 from $798 while maintaining an Equal Weight rating. The firm updated its models within the data center sector. Meanwhile, on August 7, Truist analyst Anthony Hau increased the price target on the shares to $961 from $904 and maintained a Buy rating. The firm updated its model to reflect second-quarter results and revised revenue growth and expense assumptions.
Equinix, Inc. (NASDAQ:EQIX) provides a digital infrastructure platform designed to interconnect organizations with partners, services, or markets across its global network. It should be noted that Cramer was reluctant to recommend the stock on August 12, as he commented
“Equinix is still too expensive. That’s the commodity side of this business. I don’t want you in the commodity side. If it came much lower, we would take a really hard look at it.”
3. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 76
Average Upside Potential: 23.29%
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 22, Wells Fargo analyst Aaron Rakers reiterated an Overweight rating and $95 price target on MRVL shares ahead of the company’s August 28 report. The firm stated that competitive concerns appear overstated and noted continued strength in optics positioning. It expects Marvell to confirm that it remains on track to reach its target of 20% share in the custom XPU total addressable market by calendar year 2028.
Marvell Technology, Inc. (NASDAQ:MRVL) develops semiconductor solutions for data infrastructure, with a focus on system-on-a-chip designs that combine analog, mixed-signal, and digital processing. The company provides products like Ethernet products, processors, custom chips, interconnect and storage solutions, and components for high-speed data transfer. Like the analyst, Cramer was bullish on the stock as well when a caller asked about it on August 13, as he said:
“Marvell Technology’s run by Matt Murphy, and I gotta tell you, Matt, Matt is a gamer. I want you to buy more. I kid you not, I think the stock is going higher. Maybe it goes back to, maybe it goes back to par, which is genuine Wall Street gibberish for $100.”
2. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 45
Average Upside Potential: 35.48%
Novo Nordisk A/S (NYSE:NVO) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 22, DBS Bank analyst Nico Chen upgraded NVO shares to Hold from Sell and set a price target of DKK 340. In addition to that, on August 19, TD Cowen analyst Michael Nedelcovych reduced the price target on NVO to $70 from $105 while maintaining a Buy rating. Following a meeting with management, the firm noted headwinds affecting the current GLP-1 portfolio. Management indicated that guidance now accounts for downside scenarios and stated the company does not intend to compete aggressively on price. They also highlighted the potential of the oral semaglutide obesity program, which may benefit from an expanded cash-pay option.
Novo Nordisk A/S (NYSE:NVO) develops, manufactures, and distributes pharmaceutical products focused on diabetes, obesity, cardiovascular conditions, and rare diseases. The company also provides delivery devices and digital tools to support treatment, including smart insulin pens and dosing applications. It bears mentioning that, in response to a caller’s question about the company during the August 14 episode, Cramer said:
“They’re very poorly run. I don’t know this new CEO, but they are incredibly poorly run, and I’m not going to bet that they suddenly are going to change stripes… They take my breath away about how bad, how poorly they are.”
1. SentinelOne, Inc. (NYSE:S)
Number of Hedge Fund Holders: 45
Average Upside Potential: 38.22%
SentinelOne, Inc. (NYSE:S) is one of the stocks on Jim Cramer’s and analysts’ radar. On August 25, BTIG lowered its rating on S stock to Neutral from Buy. The firm removed its price target following negative results from recent field checks. The analyst cited rising competitive pressure from larger platform vendors in the cybersecurity sector. The firm stated that Street estimates for the second half of fiscal 2026 and fiscal 2027 appear overly optimistic and expects revenue growth to slow to the low double digits over the next few years.
SentinelOne, Inc. (NYSE:S) delivers AI-powered cybersecurity solutions designed to autonomously prevent, detect, and respond to threats targeting endpoints, cloud workloads, and identity credentials. Furthermore, it should be noted that Cramer was bearish on the stock as well. On August 7, when a caller inquired what Cramer thought of the company, he remarked, “Just hype.”
While we acknowledge the potential of SentinelOne, Inc. (NYSE:S) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than S and that has 100x upside potential, check out our report about this cheapest AI stock.
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