Apple Could Now Be an Epic Buy After a Bracing Drop

Investors of Apple are now experiencing a loss of money, which is an unusual condition for the company’s investors.

After rising as much as 42 percent from the end of last year to the beginning of September, Apple has witnessed a bracing series of losses. Last week alone, the stock slipped 5 percent, its worst weekly performance in more than one year.

Recent concerns have revolved around the new iPhone 8 and iPhone X products of the company, which were introduced last September 12. Mild reviews for the iPhone 8 and speculations regarding short lines for the product seem to have caught some wind out of the sails of its stocks.

However, being a group that’s always somewhat inclined toward looking on the bright side, Wall Street analysts, say that the lack of enthusiasm could really be a bullish indicator.

“Any Weakness for Early Sales of iPhone 8 Could Be a Case of ‘Short-term Pain for Long-Term Gain,'” Piper Jaffray analyst Michael Olson advised in a Friday note. He explained that “potential buyers may wait for iPhone X,” and that since the X will tend to be about $250 more expensive than the 8, “a mix shift toward iPhone X, even to the detriment of near-term iPhone 8 units, is positive for Apple.”

On Friday, Jeffrey Kvaal, a Nomura Instinet analyst, struck a similar tone.

“Our iPhone 8 shipment time tracker indicates pre-orders are not as robust as during the 7 cycle. We believe slow carrier promotions and relatively modest feature upgrades to the 8 are shifting demand to the X, which is a positive for Apple,” Kvaal wrote, albeit adding: “We cannot rule out the possibility. However, that instalment plans and high [average selling prices] are inhibiting demand.”

The head of equity sales trading at Cowen & Co., David Seaburg, regards the stock to be a slam dunk at present levels.

“The X, in particular, will show up in Q4 numbers,” Seaburg said Friday on CNBC’s ” Power Lunch .” “You should absolutely be buying the stock here,” and “you could trade it up to $180,” relating to a level 19 percent above the $151.89 Friday closing price of Apple.

The head of technical research at Fundstrat Global Advisors, Robert Sluymer, also strikes a similar tone.

On “Power Lunch.” last Friday, Sluymer said that the drop of Apple from its high of $164.94 has taken it down to an area of “very good trading support” which rests from around $147 to $150.

The fact that the stock has been a very powerful market leader implies that “you want to own the name,” and because its short-term performance has taken it to a key level of support, “I think this is where you begin to nibble,” said Sluymer.