Market Overview - The S&P 500 is trading slightly below its all-time highs, showing resilience despite recent selling in sectors like software and AI, with a focus on projected earnings growth in 2026 and potential rate cuts [1] - Long-term investors are encouraged to continue buying strong stocks, as market fluctuations may not significantly impact overall investment strategies [2] Investment Opportunities - Investors are advised to consider best-in-class, cheap stocks trading under $10, which have strong Zacks Ranks due to improving earnings outlooks [3] - Stocks priced under $10 are generally seen as less risky than penny stocks, which trade for less than $5, but still carry speculative risks [4][6] Stock Screening Criteria - A screening process for identifying the best cheap stocks under $10 includes parameters such as price, volume, Zacks Rank, average broker rating, number of analysts covering the stock, and earnings estimate revisions [8][9] Featured Stock: Itaú Unibanco (ITUB) - Itaú Unibanco (ITUB) is highlighted as a strong investment opportunity, being one of the largest private banks in Brazil, with a full range of financial services [10] - ITUB stock has increased by 75% over the past year, with projected adjusted earnings growth of 18% in FY26 and 10% in the following year, supported by 7% sales growth in both periods [11] - The stock currently holds a Zacks Rank of 2 (Buy) and is part of the Banks – Foreign industry, which ranks in the top 16% of Zacks industries, indicating strong potential for price movement [13]

Company Overview - Banco De Chile (BCH) is a significant player in the Chilean banking system, providing a range of services including commercial banking, retail banking, corporate lending, wealth management, and treasury services [2]. Earnings Momentum - The core issue affecting Banco De Chile is earnings momentum, with analyst estimate revisions trending lower due to slowing loan growth, tighter financial conditions, and a challenging macroeconomic environment in Chile [3]. - Recent earnings estimates have been revised downwards, with the Zacks Consensus Estimates for the current year decreasing from $2.56 to $2.54, and next year's estimate dropping from $2.81 to $2.73 [4]. Industry Context - The Banks – Foreign industry ranks in the top 16% of the Zacks Industry Rank, indicating that there are other companies within the sector performing well, such as Banco Bilbao Viscaya Argentaria (BBVA) and Itau Unibanco (ITUB), which are rated as Zacks Rank 1 (Strong Buy) [5].