As We Brace for Earnings, I'm Eyeing This Bank Stock

Market action is mixed as investors position for earnings reports, Iran news, and the Fed interest rate decision. Breadth is positive with about 58% of stocks higher, but the VanEck Semiconductor ETF (SMH) and the Roundhill Magnificent Seven ETF (MAGS) are seeing some profit-taking. The pockets of hot momentum have cooled off and we have some rebound in the iShares Biotechnology ETF (IBB) , the Financial Select Sector SPDR Fund (XLF) , and the Energy Select Sector SPDR Fund (XLE) .

I took some partial stops on extended plays in opticals including Lightpath Technologies Inc. (LPTH) and Viavi Solutions Inc. (VIAV) , but that is more about protecting gains rather than a bearish view. The risk of a sell-the-news reaction in the technology sector is very high, and I'm increasing my caution in front of reports.

I continue to look for some new buys and am finding the best setups outside of the technology sector right now. For example, I seldom, if ever, buy anything in the banking sector, but the chart of Primis Financial Corp. (FRST) caught my eye.

Primis: Bank Turnaround, Clean Chart

FRST is the bank holding company for Primis Bank, a Virginia state-chartered community bank serving individuals and small to mid-sized businesses through roughly 24 full-service branches across Virginia and Maryland. While not exactly a hot, momentum-type play, FRST is a compelling turnaround story with an interesting chart.

After years of losses driven largely by a problematic third-party consumer loan portfolio, bank management made a series of decisive moves in late 2024 and through 2025 to clean up the balance sheet and reposition the business for sustainable profitability. In Q4 2024, the company swallowed the proverbial frog and moved the troubled consumer book to held-for-sale, selling its Life Premium Finance division and launching a mortgage warehouse lending business that has since grown to over $460 million in total loans by the end of Q1 2026. Full-year 2025 net income came in at $61 million ($2.49 per diluted share) vs. a loss the prior year, with Q4 2025 alone generating $1.20 per diluted share. Meanwhile, a sale-leaseback of 18 branch properties added approximately $58 million in proceeds, with tangible book value per share growing 18% year-over-year to $13.47. The company also authorized a share repurchase program in December 2025 and most recently reported Q1 2026 operating earnings per share of $0.33, with management expressing optimism about the trajectory of profitability through 2026.

Technically, FRST saw a solid upside move toward long-term lateral resistance near the end of 2025. After digesting those gains and finding support at the 100-day moving average, the stock pushed back toward January highs and has since been flagging with support at the 20-day moving average, forming a near-term cup-and-handle. On Friday the stock pushed back toward resistance on heavy volume, and a move out of its pattern could attract attention. It trades a bit thin and the spread may be wide, but that is an attractive chart setup and carries lower risk.

I'm also looking at the biotechnology sector for some entries, but with earnings and drug study news, there are plenty of landmines if you are not careful. I continue to like Xeris Biopharma Holdings Inc. (XERS) into its upcoming report on May 7.

Watching Earnings Dates

My best advice right now is to be aware of earnings report dates for your holdings. It is high risk to hold into these reports and it is important to make sure you are managing risk. Earnings are a binary bet, and they can be gambling situations rather than prudent speculation. I'll have more on this tomorrow.

At the time of publication, DePorre was long LPTH, VIAV, XERS, FRST.