BCH Price Rises 0.92% as Earnings Outlook Improves

On JAN 9, 2026, Banco De Chile (BCH) closed at $638.5, reflecting a 0.92% increase over the past 24 hours. While the stock dipped 0.2% in the last week, it posted a 6.39% gain both over the past month and the past year. The recent price action is attributed to an improving earnings outlook, with both BCH and its regional counterpart, Banco Santander-Chile (BSAC), currently holding a Zacks Rank of #2 (Buy). This indicates that analysts have revised earnings estimates upward for both institutions.

Earnings Outlook and Analyst Revisions

BCH's current valuation appears to benefit from positive analyst revisions, which are a key focus of the Zacks Rank system. The system is designed to highlight companies with improving earnings forecasts, and BCH is among those showing such trends. This improvement in earnings expectations is a significant factor for value investors, who typically look for stocks with a strong balance between fundamentals and market price.

While the earnings outlook is positive, it is only one aspect of valuation analysis. Investors also examine traditional financial metrics to determine whether a stock is fairly priced or undervalued.

Valuation Metrics and Style Scores

BCH has a forward P/E ratio of 14.17 and a PEG ratio of 2.66, suggesting that its stock is relatively expensive when factoring in expected earnings growth. In comparison, BSAC has a lower forward P/E of 12.33 and a PEG ratio of 0.73, indicating it may be more attractively priced in terms of growth potential.

The P/B ratio also shows a similar pattern, with BCH at 3.54 and BSAC at 3.21. These figures suggest that BCH is trading at a premium to its book value compared to its regional rival.

According to the Style Scores system, BCH has a Value grade of D, while BSAC holds a more favorable B rating. These grades are derived from an analysis of multiple valuation metrics, including P/E, P/B, earnings yield, and cash flow per share. The higher score for BSAC points to a more compelling value proposition for investors focused on traditional fundamentals.

Corporate Activity and Market Position

On January 8, 2026, BCH announced the successful placement of senior, dematerialized bonds in the local market. While the details of the issuance were not fully disclosed in the available information, such activity is often a sign of a strong balance sheet and continued access to capital.

The bank’s market position in Chile remains solid, supported by a strong earnings trajectory and the benefits of operating in a stable regional environment. However, when compared directly to BSAC, BCH currently lags in valuation efficiency, as reflected in its lower Style Scores grade.

Analyst Perspectives and Investment Implications

Analysts project continued earnings growth for BCH, supported by its improved Zacks Rank. Nevertheless, the valuation metrics suggest that investors may find better entry points in BSAC for now. While BCH remains a strong performer in the Banks - Foreign sector, its current pricing does not offer the same value appeal as its competitor.

For long-term investors, the recent bond issuance and positive analyst revisions reinforce BCH’s financial strength. However, those prioritizing value may prefer to wait for a more favorable entry point or consider alternative opportunities within the sector.

In summary, BCH has shown strong performance over the past year, supported by improved earnings estimates and positive market developments. Yet, its valuation metrics suggest that it is currently less attractive than BSAC from a value investing perspective. Investors should continue to monitor both stocks closely as the earnings outlook and market conditions evolve.