Investors have seen Tiffany's share price drop nearly 20 percent since its 52-week high in March amid economic challenges both domestically and abroad. On Thursday, the company cut its full-year profit estimate for the third time this year.
"From a historical valuation perspective, it's now trading pretty near a trough, a normalized trough valuation so I think the expectation is already pretty low for Tiffany shares," Nagel said.
Nagel cautioned against viewing Tiffany's earnings miss as a sign of weakness in luxury spending.
"If you're selling more high-end products, I think that's a testament to ongoing strength in that segment of the consumer population," Nagel said. But weaker silver sales do reflect ongoing struggles for the company's lower-end consumer to some extent, he added.
As the company enters the crucial holiday season, Nagel said its new products should help boost sales at the company, which has struggled against up-and-coming brands, such as David Yurman.
—By CNBC.com's Katie Little; Follow Her on Twitter @katie_little
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Brian Nagel does not own Tiffany stock.