×

To beat the market, just buy Apple now: Advisor

Want to beat the S&P 500 in one year? Maybe you should just buy Apple.

Enthusiasm for the tech titan among traders has tempered this year, especially as the company's premier product, the iPhone, faces the threat of decreasing demand. On Tuesday, Apple shares fell more than 3 percent after a Credit Suisse report that the company is cutting production of iPhones by 10 percent. The stock is down more than 8 percent in the last six months.

"I think we're really getting Apple fatigue at this point," Boris Schlossberg of BK Asset Management said Tuesday on CNBC's "Trading Nation." "From an investor's point of view, Apple equals iPhone and that's pretty much it. All of their other initiatives, iCloud, the watch, Apple Music, have all been kind of duds."

Because of this negative sentiment, Apple shares have been selling off, Schlossberg said.

Read MoreIf Apple does these 3 things it could hit $1 trillion

But according to Erin Gibbs, equity chief investment officer of S&P Investment Advisory Services, Apple has become a very attractive buy.

"There are some definite concerns about the iPhone component demand, and it is odd that the stock is trading down so low even after its announcement of the supersized iPads," Gibbs said. "But overall, if you buy Apple historically at these valuation levels, you will be better off than the broader index a year later."

Read MoreCredit Suisse: Apple cutting iPhone production orders 10%

Gibbs said Apple is trading below its three-year average at 12.5 times analysts' expectations for next year's earnings, compared to the overall S&P 500, which is 17.5 times forward earnings. Meanwhile, she said Apple is expected to see steady earnings growth of 7 to 8 percent and revenue expansion of 5 percent over the next year.

"It's not phenomenal, it's not the stellar growth that we've seen recently," she said, "[But] we see this as a long-term stable play."

Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number, and a question to TradingNation@cnbc.com

Videos

Trades to Watch

Trader Bios

About

Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Brian Sullivan

Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

Read more

Connect