In a new report, Morgan Stanley calls athletic footwear “the trend to play” during Q2 earnings season. Analyst Jay Sole suggests two pair trades in the space that the firm believes will allow traders to capture outperformance while limiting overall risk.

Strong Trends

According to the report, recent data and store checks have indicated that trends in athletic footwear sales have continued to get stronger. Sole believes this data is an indication that athletic footwear stocks might catch the market by surprise this earnings season, as apparel sales have been lackluster and earnings expectations are relatively low.

Growth Deceleration?

While many are expecting growth deceleration in athletic footwear following more than three years of strong growth, Morgan Stanley believes…

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