Capital Advisors: 'The Setup For Apple Is Very Good In The Coming Years'

The fall in Apple Inc. AAPL shares since it reported third-quarter earnings might have unnerved many investors. However, according to Channing Smith, Managing Director, Equity Strategies at Capital Advisors, this fall presents an opportunity to investors to buy more shares of Apple at a lower price.

Smith was on CNBC to explain why he is bullish on Apple going forward.

A Buy In Here

"We're going to look very closely to increasing the position [in Apple]," Smith began. "If you look at, at what's happened this earnings season. If you miss analysts expectations, your stock is going to get punished and despite Apple beating on the top and bottom lines, that iPhones unit numbers came in a little bit shy."

He continued, "And so the stock reacted negatively. We saw it kind of bounce up a little bit and then it has corrected to these levels. We think it's a buy in here. The problems that kind of plagued the company about two years ago simply no longer exist."

The Setup Looks Good In Coming Years

On the relative insignificance of the growth in Apple Music reported recently, Smith said, "It just strengthens the ecosystem...what everyone is going to focus on is iPhones and we had a miss. But if you read that earnings transcript, the numbers are really astonishing. I mean, we saw 35 percent growth in units."

"We saw 59 percent growth in revenue, China grew over a 100 percent and their revenue is 89 percent unit growth. So, if you look at the numbers they were at the high ends of management's expectations. I think what's happened is that analysts like usual have got a little bit too aggressive and so the stock has come in. But this is a buying opportunity, the setup for Apple is very good in the coming years," Smith concluded.