NEW YORK (TheStreet) -- Shares of Wells Fargo& Co. (WFC) - Get Report are up 2.68% to $50.52 in late-morning trading on Wednesday even though the bank on Tuesday lowered key financial targets and said it would reduce exposure to troubled energy loans.
"Wells Fargo didn't even have good things to say yesterday, but it doesn't matter," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
The banking sector is in another "stealth rally," Cramer contended.
Nobody is talking about it because investors want to get out of these stocks, but shares are "tearing" higher on expectations that the Federal Reserve will soon raise rates, Cramer mentioned.
There is "no research whatsoever" pushing these stocks up, he noted. The rally is being fueled not by ratings upgrades but by expectations that the Fed will announce that the economy is improving.
"This is about the rate hikes and how much money [the banks] will make on the rate hikes," Cramer stated.
He conceded that bank aficionados have been faked out numerous times, but this rally appears to have staying power - especially because it's proving resilient despite negative news.
The rally within the banking sector marks a "significant moment" for the broader market, Cramer added in the above video.
"This is the possibility of a powerful rally and the reason is because the banks are in," he said. "These are how real rallies start - on nothing and then we find out why."
(Wells Fargo is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings here.)
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Wells Fargo's strengths such as its revenue growth, good cash flow from operations, expanding profit margins and attractive valuation levels outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: WFC
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.