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Should Value Investors Buy Banco Santander Chile (BSAC) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Banco Santander Chile (BSAC - Free Report) is a stock many investors are watching right now. BSAC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors will also notice that BSAC has a PEG ratio of 0.37. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BSAC's industry has an average PEG of 0.66 right now. Within the past year, BSAC's PEG has been as high as 8.32 and as low as 0.34, with a median of 1.40.

Finally, we should also recognize that BSAC has a P/CF ratio of 11.47. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BSAC's P/CF compares to its industry's average P/CF of 12.75. BSAC's P/CF has been as high as 16.04 and as low as 9.54, with a median of 11.70, all within the past year.

These are just a handful of the figures considered in Banco Santander Chile's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BSAC is an impressive value stock right now.


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