Apple (AAPL) - Get Report  shares have dropped 6% thus far in 2016 as the crowd of skeptics surrounding the once-unstoppable stock has grown larger. Eric Lynch, managing director at Scharf Investments, said the reason to own Apple is not Tim Cook's emerging market trips but its cheap valuation.

"You are talking about a 13% free cash flow yield for a platform company that should have a good replacement rate going forward," said Lynch.

Lynch helps direct the Scharf Fund, which is up 1% thus far in 2016, according to Morningstar. The $564 million fund has returned an average of 10.7% annually over the past three years, outpacing 95% of its peers in Morningstar's large-cap blend category.    

Lynch is also positive on Canadian Pacific (CP) - Get Report , up 1% year to date, saying the railroad operator's stock has plenty of room to run despite the demise of its deal to merge with Norfolk Southern (NSC) - Get Report . Furthermore, he said the railroad's stock has dropped due to the collapse in the energy sector, but in his view that relationship is overstated.

"It's a stock that is down in sympathy with energy declines, but it is not really an energy direct correlation," said Lynch. "It's in a great secular growth industry, and is effective in a duopoly with pricing power. It's still massively more efficient to ship via rail than by truck so there is pricing power and margin expansion there as well."

Oracle (ORCL) - Get Report  shares were propelled higher in March after the company posted a 40% jump in third-quarter cloud revenue to $735 million. Lynch said the software seller could see its stock move even higher in the next year as margins in its cloud business expand.

Finally, Lynch is a fan of Advance Auto Parts (AAP) - Get Report , up 1% so far in 2016, calling it dramatically cheap. Last week Credit Suisse lowered its stock price target to $160 from $175, although it maintained a buy rating on the auto parts and accessories retailer. The analysts based the lower price target on their new 2017 earnings estimate of $8.74 per share, but $160 is still 18 times that figure.

"It's currently trading at a dramatically reduced valuation compared to O'Reilly (ORLY) - Get Report  and AutoZone (AZO) - Get Report ," said Lynch.