BCH +5.35% 24H As Momentum Indicators Suggest Strong Buy Signal

BCH, the Chilean banking giant, rose 5.35% in the last 24 hours as of Nov 7, 2025, reaching $497.5 despite a 7.21% drop over the previous week and a 6.9% decline in the last 30 days. Over the past year, the stock has appreciated by 14.66%, outperforming the broader market during a period marked by volatility. These contrasting trends have fueled renewed interest in BCH from investors and analysts focusing on momentum strategies.

Momentum investing typically involves following the established trend of a stock—either bullish or bearish—with the assumption that the movement is likely to persist. In the case of BCH, recent price activity reflects strong performance relative to its sector. Over the last week, BCH shares gained 2.78%, outperforming the 1.05% rise in the Zacks Banks - Foreign industry. The momentum continues when looking at the monthly trend: BCH surged by 14.09%, far above the 0.66% industry increase. Year-to-date, the stock has gained 51.13%, significantly outperforming the S&P 500’s 21.31% return.

BCH’s trading volume has also supported its bullish case. The stock has maintained an average daily volume of 307,931 shares over the last 20 days, providing a baseline for assessing volume trends. Strong volume during upward price movements generally signals increased buyer interest and reinforces the momentum signal.

The earnings outlook also supports the momentum thesis. Over the past two months, 2 of BCH’s earnings estimates have been revised upwards, contributing to a 0.02 increase in the consensus estimate to $2.56. Looking ahead, two estimates have also moved in a positive direction in the next fiscal year without any downward adjustments. These revisions reflect a growing confidence in the company’s financial trajectory.

BCH is currently rated a Zacks Rank #1 (Strong Buy), which is associated with a history of strong short-term outperformance when combined with a Momentum Style Score of B. According to Zacks data, stocks with this rating and score have historically outperformed the market within one month.

The recent momentum metrics and Zacks analysis collectively suggest a compelling near-term investment case for BCH. The stock’s performance across multiple timeframes, coupled with positive earnings estimate revisions and favorable trading volume, positions it as a top momentum pick.

Backtest Hypothesis

A backtest strategy could be constructed to evaluate the performance of holding BCH following a 5% surge in a defined time frame. This would involve identifying historical dates when the stock’s close-to-close return exceeded 5%, then measuring the subsequent 22-trading-day return. The goal would be to assess whether the stock has historically continued its upward momentum, as suggested by its current price action and technical indicators.

Such a backtest would require defining key parameters, including the type of price movement (close-to-close or intraday), the holding period (here assumed as 22 trading days), and the frequency of such events. The results could provide empirical validation of the momentum strategy applied to BCH, offering insights into whether similar performance patterns have repeated in the past.