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Apple will ‘underperform perpetually,’ trader warns

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Big Apple comeback in store?

Apple shares are a poor investment choice right now, according to Steve Grasso, director of institutional sales at Stuart Frankel.

"I think it's going to underperform perpetually," Grasso said.

Apple shares have had a mediocre year, but rebounded nicely following an impressive earnings report. In fact, the stock is the Dow Jones industrial average's best performer over the past month, rising almost 12 percent.

Yet for Grasso, the company's reliance on the iPhone is problematic. When Apple reported earnings in late July, it exceeded analysts' expectations in part because of the success of the iPhone SE model. But there remains a concern among analysts that not as many people as expected will upgrade to the iPhone 7.

"Right now everyone is looking forward to the iPhone 7. ... I think it can only disappoint," Grasso said Tuesday on CNBC's "Trading Nation. "

Grasso added that he would be a seller of any short-term strength in Apple stock.

"If you're looking for growth, you go with Facebook, you go into Amazon," he added. "The ECB and the Fed have pushed people into risk assets. Apple's really not a risk asset; it's just benefited from everyone getting pushed into the market."

Craig Johnson, technical analyst at Piper Jaffray, conceded that investors looking for a stock to grow their money shouldn't expect that from Apple. However, he still likes the now-$108 stock at current levels.

"The stock has been very resilient, it's found support four times at that $90 level," Johnson said on "Trading Nation." "[There's] more upside to come, but again this isn't going to be one of those big long-term winners."

He sees the stock eventually rising to $122.