When global markets get selective, foreign financials are often the first place investors start trimming exposure. You get that double-edged sword of equity risk and currency risk. Risk-off typically means dollar strength, which is no good for foreign stocks. Today’s Bear of the Day has avoided these pitfalls for now. However, the near-term setup is far less compelling than it looks on the surface.Today’s Bear of the Day is Zacks Rank #5 (Strong Sell) Banco De Chile ((BCH). Banco De Chile, as the name impli ...

Core Viewpoint - The cryptocurrency market has shown significant volatility, with established tokens like Bitcoin, Ethereum, and XRP generally providing returns for long-term investors, while caution is advised for newer or less established tokens [1][2]. Group 1: Shiba Inu (SHIB) - Shiba Inu launched in August 2020 and became popular as a meme coin, but it has lost approximately 90% of its peak valuation from 2021 [3][7]. - The project has implemented burning mechanisms to reduce the total coin supply, but the impact has been minimal, and there is a lack of developer projects supporting the token [5]. - The metaverse project associated with Shiba Inu has failed to gain traction, with low engagement levels and delays leading to its classification as unsuccessful [6][7]. Group 2: Bitcoin Cash (BCH) - Bitcoin Cash was created by forking the Bitcoin blockchain in August 2017, offering lower transaction fees and faster processing times [8]. - Over the past year, Bitcoin Cash's price has increased by approximately 44%, while Bitcoin's price has decreased by 6%, giving it a market cap of around $12.7 billion, ranking it as the 11th-largest cryptocurrency [9][10]. - Despite its growth, Bitcoin Cash's market cap is still a small fraction of Bitcoin's $1.8 trillion, and institutional adoption remains low, raising concerns about its long-term viability compared to Bitcoin [10][11].

Core Viewpoint - The article compares Banco Santander-Chile (BSAC) and Banco De Chile (BCH) to determine which stock is more attractive for value investors [1] Group 1: Stock Ratings and Earnings Outlook - Both BSAC and BCH currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - The Zacks Rank system emphasizes stocks with strong earnings estimate revision trends, which is beneficial for investors [2] Group 2: Valuation Metrics - BSAC has a forward P/E ratio of 12.33, while BCH has a forward P/E of 13.97, suggesting BSAC is more attractively priced [5] - BSAC's PEG ratio is 0.73, indicating a better valuation relative to its expected earnings growth compared to BCH's PEG ratio of 2.62 [5] - BSAC has a P/B ratio of 3.21, compared to BCH's P/B of 3.49, further supporting BSAC's superior valuation metrics [6] - Based on these valuation figures, BSAC is rated as a superior value option with a Value grade of B, while BCH has a Value grade of D [6]

Core Insights - Moss Genomics Inc. has successfully mined its first block on the Bitcoin Cash blockchain, specifically block 931,986, using its proprietary mining infrastructure [1][2] - This milestone marks the company's entry into the Bitcoin ecosystem, with a focus on becoming a long-term builder in this space [2] - The CEO of Moss Genomics emphasized the alignment of the company's operating business and treasury strategy, viewing the BCH mining initiative as a significant first step in a broader strategy [3] Company Overview - Moss Genomics operates at the intersection of genomics and blockchain technology, aiming to advance decentralized and privacy-preserving genomics through real-world applications in health, identity, and research [3] - The company's digital asset treasury is utilized to fund development and future platform operations, indicating a strategic approach to resource allocation [3]

Group 1 - The core argument suggests that Chile is likely to transition from its current socialist government under President Gabriel Boric to a more pro-business approach [1] - The analyst, Ian Bezek, has extensive experience in Latin American markets, particularly in Chile, Mexico, and Colombia, focusing on high-quality compounders and growth stocks at reasonable prices [1] Group 2 - The investing group led by Ian Bezek, called Ian's Insider Corner, offers features such as a Weekend Digest, trade alerts, and direct access to the analyst [1]

Core Argument - Chile is expected to shift from its current socialist government under President Gabriel Boric towards a more pro-business approach [1] Group 1: Analyst Background - Ian Bezek has a decade of experience as a hedge fund analyst and has conducted extensive research in Latin American markets, including Mexico, Colombia, and Chile [1] - The focus is on identifying high-quality compounders and growth stocks at reasonable prices in both the US and developed markets [1] Group 2: Investment Group Features - Ian's Insider Corner offers features such as a Weekend Digest that includes new investment ideas, updates on current holdings, macro analysis, trade alerts, and an active chat room for members [1]

Core Insights - Jackson Financial (JXN) is outperforming its peers in the Finance sector with a year-to-date return of 18.9%, compared to the sector average of 16.2% [4] - The Zacks Rank for Jackson Financial is 1 (Strong Buy), indicating a positive earnings outlook and improving analyst sentiment [3][4] - The Insurance - Life Insurance industry, to which Jackson Financial belongs, has an average gain of 5.7% this year, further highlighting JXN's strong performance [6] Company Performance - Jackson Financial's full-year earnings consensus estimate has increased by 7.5% over the past 90 days, reflecting a more favorable earnings outlook [4] - The stock is one of 863 individual stocks in the Finance sector, which is currently ranked 2 in the Zacks Sector Rank [2] Industry Comparison - The Insurance - Life Insurance industry ranks 74 in the Zacks Industry Rank, while the Banks - Foreign industry, which includes Banco De Chile, ranks 60 and has gained 50.1% this year [6] - Banco De Chile has significantly outperformed with a year-to-date return of 67% and has a Zacks Rank of 2 (Buy) [5]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1][2]. Company Overview: Banco De Chile (BCH) - Banco De Chile currently holds a Momentum Style Score of B, indicating potential for solid momentum investing [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4]. Performance Metrics - Over the past week, BCH shares increased by 0.66%, while the Zacks Banks - Foreign industry declined by 2.46% [6]. - In a longer timeframe, BCH's monthly price change is 8.48%, outperforming the industry's 4.22% [6]. - Over the last quarter, BCH shares have risen by 27%, and over the past year, they have increased by 63.46%, compared to the S&P 500's gains of 5.68% and 14.42%, respectively [7]. Trading Volume - BCH's average 20-day trading volume is 341,827 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - Recent earnings estimate revisions for BCH show positive momentum, with 2 estimates moving higher in the past two months, raising the consensus estimate from $2.54 to $2.56 [10]. - For the next fiscal year, 3 estimates have increased with no downward revisions, indicating a favorable outlook [10]. Conclusion - Considering the positive performance metrics and earnings outlook, BCH is identified as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [12].

Financial Data and Key Metrics Changes - Banco de Chile reported a net income of CLP 927 million for September 2025, reflecting a year-on-year growth of 1.9% and an ROAC of 22.3% [2][19] - The bank's net income for the third quarter of 2025 was CLP 293 billion, representing a 1.7% increase compared to the same period last year [18] - The return on average assets stood at 2.3%, maintaining a significant gap over peers [19] Business Line Data and Key Metrics Changes - Operating revenues totaled CLP 736 billion in Q3 2025, a 2.1% year-on-year increase, supported by solid customer income of CLP 630 billion, which grew 5.4% year-on-year [20][21] - Non-customer income decreased by 14.1% year-on-year to CLP 105 billion, primarily due to lower inflation-related revenues [21][22] - Total loans reached CLP 39.6 trillion as of September 2025, marking a 3.7% year-on-year increase [24] Market Data and Key Metrics Changes - The Chilean economy showed signs of recovery, with GDP growth of 3.1% year-on-year in Q2 2025, supported by a rebound in domestic demand [3][4] - Inflation increased to 4.4% in September 2025, prompting the central bank to maintain the interest rate at 4.75% [5][6] - The loan-to-GDP ratio stood at 76% as of September 2025, reflecting subdued credit expansion relative to economic activity [11] Company Strategy and Development Direction - Banco de Chile's strategy focuses on efficiency, collaboration, and a customer-first mindset, aiming for industry-leading profitability and market leadership in lending [12][13] - The bank is committed to digital transformation and operational productivity to enhance customer experience and drive growth [47][50] - The integration of the former collection services subsidiary, Socofin, has generated operational synergies and improved efficiency [15] Management Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the Chilean economy, anticipating improved domestic demand and investment, which will drive loan growth [44][55] - The upcoming presidential elections are expected to influence macroeconomic conditions, with a consensus among candidates on the need for economic growth [54][55] - The bank expects a gradual recovery in loan growth as uncertainty eases, particularly in the SME and consumer segments [12][49] Other Important Information - Banco de Chile maintains a strong capital position with a CET1 ratio of 14.2% and a total Basel III capital ratio of 18% [34] - The bank's asset quality remains robust, with a delinquency ratio of 1.6%, significantly below peers [38] - Operating expenses increased by 1.2% year-on-year, reflecting disciplined cost management [39] Q&A Session Summary Question: Concerns about market share in commercial and consumer loans - Management acknowledged stable market shares and emphasized a focus on digital transformation and high-potential segments to improve market position [43][46] Question: Impact of upcoming presidential elections on macro outlook - Management highlighted the importance of the election results and the consensus on economic growth among candidates, which could enhance loan demand [51][54] Question: Outlook for loan growth in 2026 - Management indicated that loan growth is expected to accelerate, driven by improved economic conditions and a focus on commercial and consumer lending segments [57][59]

Economic & Banking Industry Overview - Domestic demand continues to strengthen, as shown by GDP and Domestic Demand growth rates[10] - Total imports and capital imports experienced significant fluctuations[11] - Planned investment by CCG (Corporación Chilena del Cobre) is projected to be US$72389 million in 2025 (E)[13] - Inflation and interest rates are normalizing[15] Banco de Chile's Performance - Banco de Chile's forecast for 2025 includes a GDP growth of 25%, CPI of 39%, and an overnight rate of 450%[20] - The banking industry's net income for 3Q25 was CLP 1321 billion[23] - Banco de Chile's net income market share as of September 2025 is 221%[47] - Banco de Chile's net income for the period attributable to equity holders was CLP 292914 million in 3Q25, a 17% increase compared to 3Q24[104] - The bank's CET1 ratio is 142%, and the total Basel III capital ratio is 180%[76] Strategic Priorities and Financial Results - The bank aims for a cost-to-income ratio of ≤42% and targets top 1 market share in demand deposits, commercial loans, and consumer loans[37] - Total loans reached CLP 396 trillion in 3Q25, with a YoY increase of 37%[60] - Operating expenses to operating income ratio is 3756%[110] - The bank's expected credit losses (ECLs) decreased by 10%[78]