Why Apple stock is far from dead

Why Apple stock is far from dead

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Apple shares have been taking a beating!
Photo: Ste Smith/Cult of Mac

AAPL stock fell to a new 52-week low last week, signaling its longest loss streak in 18 years, but portfolio managers aren’t close to throwing in the towel on Apple just yet. In fact, this could turn out to be the equivalent of a Black Friday sale for anyone wanting to get their hands on some massively undervalued stock!

“Things aren’t as bad as everybody thinks,” said Dan Morgan, senior portfolio manager at Synovus Trust, speaking on CNBC‘s “Squawk on the Street.” “[Apple has] a tremendous amount of room to grow.”

Acknowledging that seasoned investors like Carl Icahn have voiced concerns over Apple’s continued growth in China, Morgan accepted that brewing problems in the country may represent an “icy path” for Apple, but says that he thinks fears may be somewhat overblown — and that, “if [Apple] can go from 13 percent to 20 percent market share [in the country], that would be huge.”

Meanwhile, David Katz, chief investment officer at Matrix Asset Advisors, says that his firm recently took a small position in Apple when stocks fell under $95. He predicts AAPL will rebound as soon as investors settle down and start to feel a bit more confident — likely around the time of the iPhone 7.

“It’s very important to put Apple’s valuation in perspective,” he told CNBC‘s “Power Lunch,” while also acknowledging Apple’s dividend. “It’s a very good place to be.”

Finally, Jason Ware, chief investment officer at Albion Financial, told CNBC‘s “Power Lunch” that his “near-term realistic” outlook is that the iPhone 7 will help drive AAPL stock back up. “It doesn’t have to be better than the [iPhone]6, it just has to get people to upgrade and reignite a little bit of growth again,” he suggested.

People have long argued that AAPL is an undervalued stock, based on metrics like its massive $200 billion cash pile which seem to get largely ignored by many. While we may have to wait until 2017 to get a really significant iPhone refresh, it appears that — for many investors — doom predictions about Apple have been greatly exaggerated.

Do you think AAPL is a good investment at its current price, or do you think the boom period is over for good? Leave your comments below.

Source: CNBC