Jim Cramer, host of Mad Money, on Monday brought attention to something he believes is often overlooked in the market: the influence of analyst price targets.
“We don’t talk all that much about the impact of analyst price targets, but we should because it’ll explain a lot about why so many stocks keep levitating almost aggressively. First, price targets matter. They give a broker or a trader a reason to call a customer.”
READ ALSO: Jim Cramer Shed Light on These 14 Stocks and Jim Cramer Reflected on These 17 Stocks.
Cramer argued that any mechanism capable of swaying large institutional investors has the potential to move markets, and a raised price target fits that description. He acknowledged that while some may feel these adjustments should not carry so much weight, the reality is that they do. In fact, Cramer pointed out that analysts themselves often misjudge trades, ending up on the wrong side.
Cramer suggested that heading into Monday morning, there was a strong possibility that many traders were shorting certain stocks. He highlighted that this kind of thinking is widespread among hedge funds, many of which closely follow the yield curve and allow it to dictate their strategies.
“In the end, though, a lot of money managers simply failed to realize that the amount of money being pumped into the system by the big, beautiful budget will trigger huge buying. The short sellers were too worried about the deficit to read the fine print, which is filled with reasons to buy the stocks.”
Cramer said that small, seemingly minor increases in price targets often signal that short sellers are being caught off guard by skeptical investors turning bullish, and that is the “process” to make money in 2025.
Our Methodology
For this article, we compiled a list of 14 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on July 21. We listed the stocks in ascending order of their hedge fund sentiment as of the first quarter of 2025, which was taken from Insider Monkey’s database of 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).
Jim Cramer Shared Thoughts on These 14 Stocks
14. Solid Power, Inc. (NASDAQ:SLDP)
Number of Hedge Fund Holders: 16
Solid Power, Inc. (NASDAQ:SLDP) is one of the stocks that Jim Cramer shared thoughts on. A caller asked for Cramer’s opinion on the stock, and he commented:
“Momentum, the stock’s up 100%. That’s big momentum, but when it’s up 100% percent, then you know what, I think you gotta do what I call a schnitzel. Take a little off the table because that thing has just been a horse.”
Solid Power (NASDAQ:SLDP) develops solid-state battery technology for electric vehicles and other applications. The company provides sulfide-based electrolytes and licenses its cell designs and manufacturing methods. In its Q1 earnings report in May, the company reported objectives for 2025.
Solid Power (NASDAQ:SLDP) is planning to improve its electrolyte research using customer feedback and internal development insights. It plans to begin installing a pilot line for continuous electrolyte production and expand sample distribution to meet partner commitments. The Electrolyte Innovation Center will support fast, demand-driven innovation. The company also plans to maintain financial discipline alongside ongoing investments in technology.
13. Enovix Corporation (NASDAQ:ENVX)
Number of Hedge Fund Holders: 23
Enovix Corporation (NASDAQ:ENVX) is one of the stocks that Jim Cramer shared thoughts on. During the lightning round, a caller inquired after Cramer’s thoughts on the company, and he stated:
“We have a glut of oil. I’m worried about that. ENVX is another stock that’s just up way too much. I mean, we gotta find some stocks that are not up like a straight shooter, because what happens, these are what I call parabolic buys. And if you buy a parabolic stock, what happens is it goes parabolic down. So, therefore, we’re not going to buy that stock.”
Enovix (NASDAQ:ENVX) designs and produces advanced lithium-ion battery cells for use in wearables, smartphones, computing devices, electric vehicles, and other applications. Massif Capital stated the following regarding Enovix Corporation (NASDAQ:ENVX) in its Q4 2024 investor letter:
“Our most volatile position remains Enovix Corporation (NASDAQ:ENVX), and we admit to being miffed by its continued volatility. At one point, it made sense as it was a story stock, but at this point, the stock has advanced well beyond being a story. Despite the progress the firm is making operationally, the stock has historically annualized volatility over rolling 100-day periods of nearly 100%. Last year, the stock moved more than 30% from local lows to local highs four times; it also had drawn downs from local highs to local lows of more than 35% three times. The short interest in the stock also remains incredibly high at more than 30% of the stock’s float.
This strange trading behavior and short interest are occurring against a strong operational backdrop. The firm completed site acceptance testing for its high-volume production line at its Fab-2 site in December, positioning the company well for mass production of batteries starting in 2025/2026. The management team also continues to advance the sale pipeline, announcing, in December, a prepaid purchase order from a “Silicon Valley-based global technology leader” for a battery solution for the buying firm’s mixed reality wearables. The deliveries for this order will be small in 2025 and ramp in 2026, but it’s unclear, especially given the market for mixed reality wearables (total TAM assuming battery ASP of $5/unit is $175 million), that they will be all that significant. Nevertheless, this order is yet another indicator that this is no longer a company with a science experiment and a story but instead a battery manufacturer…” (Click here to read the full text)
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