At $700 a share, Apple is still undervalued and could hit the $1,000 mark, said James Altucher, founder of Stockpicker.com, on Tuesday. But with Amazon's new Kindle Fire HD on the way to market, the iPhone and iPad maker still faces headwinds, he cautioned.
"It is definitely undervalued. It could easily find its way to $1,000," Altucher said onCNBC's "Street Signs."
"I still think this has room to grow, particularly on the forward price over earnings multiple basis...There are some headwinds though."
Apple stock has risen sharply in the last few weeks leading up to the release of its iPhone 5, which was unveiled last Wednesday and became available for pre-order last Friday.
The tech giant's stock hit $700 a sharefor the first time ever in after-hours trading Monday after the company announced earlier that morning that it had two million pre-orders for the iPhone 5 during the first 24 hours it was available.
Apple stock continued to trade at about $700 Tuesday.
Jon Burnham, chairman and CEO of Burnham Financial Group, said he also expects the Apple's stock price to continue to climb.
"The answer is of course it can sell at $1,000 a share...I think it will, I don't know when, at some point in the next couple of years or sooner," Burnham said. "This company is growing so incredibly fast, it's hard for me to believe that it's priced where it's selling."
While Altucher said that he expects sales of Apple's iPhone 5, along with other products in the company's pipeline like the rumored iPad mini and the next version of the iPhone, to continue to spur growth, he said that the company is not immune to competition.
Amazon's new Kind Fire HD, which ships on Nov. 20, is "feature for feature a better tablet than the iPad," and could pose trouble for Apple in the first quarter, Altucher said.
"There is the Kindle Fire on the horizon, that said, Apple is just dirt cheap here and it's going to keep going," he said.