Shares of SolarCity (SCTY) have jumped more than 9% on Tuesday on news the company has entered into an agreement to install solar power systems in up to 100 Whole Foods Market (WFM) stores.

The deal provides SolarCity with "legitimacy," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.

SolarCity's stock has been "down, down, down after the quarter, but this is going to get it going," he said.

Image placeholder title

SCTY data by YCharts

"There's 50 million rooftops in the U.S.," Cramer said. "We've been waiting for the big commercial deals; SolarCity got one."

In addition, Cramer said that "the shorts have been all over [SolarCity's stock], and everything they've been all over, they're getting killed [on]."

In terms of Whole Foods Market, he noted the stock rose on Monday on "takeover rumors that I don't think are going to happen."


WFM data by YCharts

Image placeholder title

Meanwhile, Cramer also discussed Panera Bread (PNRA) , which has edged up Tuesday following a Morgan Stanley upgrade to buy from hold based on optimism about the company's digital initiatives.

Image placeholder title

PNRA data by YCharts

"The restaurant group is hot, hot, hot. This is is a stock that can go much higher," Cramer said.

At the time of publication, Cramer's Action Alerts PLUS had a position in PNRA.