An analyst named Apple his top large-cap pick for 2014, predicting the possibility of up to three iPhone screen sizes and the debut of the iWatch this year.

Brian White of Cantor Fitzgerald dubbed 2013 "a year to forget" for Apple Inc. since its stock underperformed the major averages, but believes this year the Cupertino, Calif., company will be able to excite investors with new product innovations. The analyst anticipates the iWatch "becoming a reality" in 2014 along with various iPhone screen sizes, including possible entry into the "mega-sized smartphone category." White said in a client note that there's also media reports that a 12.9-inch iPad could debut this year, but the analyst said his research indicates that it is really more of a hybrid device that he calls the "iPad Pro."

Aside from new products and advancements in existing product categories, White believes the new iPhone deal with China Mobile, the world's biggest wireless carrier, will rejuvenate sales growth in China. Last month Apple and China Mobile reached a multiyear sales agreement that will allow China Mobile to sell the iPhone. Apple and China Mobile did not announce pricing or terms of the deal.

The analyst reaffirmed a "Buy" rating and $777 price target.

Shares of Apple fell $8.23 to $552.79 in afternoon trading Thursday as the broader markets also declined.