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.
Cramer expressed concern over other names such as Gilead Sciences (GILD), saying the stock may not hold up in the rally.
He concluded that the market "likes old-fashioned growth."
-- Written by Bret Kenwell in Petoskey, Mich.