Strength Seen in Primis Financial (FRST): Can Its 5.8% Jump Turn into More Strength?

Primis Financial (FRST) shares ended the last trading session 5.8% higher at $14.01. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1% gain over the past four weeks.

The performance of banks is expected to have improved in the second quarter given the higher interest rates and rise in demand for loans. Investors are also bullish on the banking sector on expectations of the interest rate hikes this year. This possibly led to the optimistic stance by the investors, which drove Primis Financial stock higher.

This holding company for Sonabank is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $25.95 million, down 1.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Primis Financial, the consensus EPS estimate for the quarter has been revised 14.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on FRST going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Primis Financial belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, American Express (AXP), closed the last trading session 3.2% higher at $146.15. Over the past month, AXP has returned -14.3%.

For American Express , the consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $2.38. This represents a change of -15% from what the company reported a year ago. American Express currently has a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research