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Portfolio managers expect Apple's stock to bear fruit

Shares of Apple are coming off of Friday's new 52-week low as investors worry about slow growth, especially abroad. But some portfolio managers say Apple is set to bear more fruit than the Street may realize.

"Things aren't as bad as everybody thinks," Dan Morgan, senior portfolio manager at Synovus Trust told CNBC's "Squawk on the Street" Monday. "They have a tremendous amount of room to grow."

Apple is facing negative headwinds after its first quarterly sales drop in more than a decade. Shares of the tech company have fallen almost 12 percent since April 26, when the company reported earnings and revenue that missed analyst expectations, as well as lowered guidance.

In particular, Morgan acknowledged trouble for Apple in China, calling it an "icy path" for the company. "But that also means there's tremendous room to grow," he said. "If they can go from 13 percent to 20 percent market share, that would be huge."

With a dividend yield above 2 percent, Morgan said he's happy to wait for Apple to bounce back, especially while the 10-year treasury note yield are around 1.8 percent.


"You're kind of getting paid to kind of wait for something to grow down the road," Morgan said. "We're willing to give Apple a buy and see if they can grow again."

David Katz, chief investment officer at Matrix Asset Advisors, recently took a small position in Apple when the stocks dipped below $95. Shares of Apple traded around $93 dollars Monday, far below its 52-week high of $132.97. Katz predicted that Apple will jump 15 percent higher by the time investors finally feel more confident.

"It's very important to put Apple's valuation in perspective," Katz told CNBC's "Power Lunch," also highlighting Apple's dividend. "It's a very good place to be."

Katz and his team at Matrix are waiting for the newest iPhone release, which has historically helped boost the stock.

"By the time there's clarity that the new phone will be hot, the stock will do well," Katz said.

Jason Ware, chief investment officer at Albion Financial is also holding the stock and looking to the new iPhone for the stock to recover.

"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," Ware told CNBC's "Power Lunch" Monday. He called his stance not overly optimistic but "near-term realistic".

"They had a really big product cycle and to expect that that is going to continue at a 20 percent growth rate is just not realistic," Ware said.

In order to be a long-term investor in the stock, not a trader, Ware said, you need to look through rough patches to "fundamentals" and the next product cycle.