NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, warned investors about the potential for momentum stocks to stall out at current levels -- despite expectations for the group to rally after the recent selloff.
As an example, he pointed out that Bernstein reiterated its $1,500 price target on Google (GOOG), an AAP holding. The stock is "radically undervalued" and should have a rising valuation due to all of its different business segments, Cramer summarized from the analyst's research.
Normally, the stock would be up $10 to $15 on a report like this, he added. Instead, shares are lower in Wednesday's session. Perhaps the bounce in momentum stocks on Tuesday was only a short-term thing. Maybe the rally "doesn't have staying power," he pondered.
He concluded that the market "likes old-fashioned growth."
-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell