Consumer discretionary and retail stocks have been some of the best performers of 2015, but according to one trader, a potential interest rate hike later this year could shake up the space.
"What happens during a period of rising rates is retail and consumer discretionary stocks sell off compared to the S&P 500," said Cowen & Co.'s head of sales trading, David Seaburg.
"If you look at a historical chart of the S&P 500 versus consumer discretionary six months prior and six months following a rate hike, you can see that in the six months prior consumer discretionary stocks outperform and then rates move and the S&P 500 starts to outperform."
Read More Fed can be both late and slow to raise rates: Kocherlakota
But there's one name that Seaburg sees weathering the storm: Nike. "I think Nike is a great stock to own, especially in the face of rising rates," he said on Wednesday's "Trading Nation." The apparel and footwear company's shares are up 38 percent in the past 12 months. "Nike is a name with really solid growth and I think growth is the name of the game here."
And Seaburg has four reasons why Nike will continue to drive higher, despite a typically difficult period for retail and discretionary names. "Nike has a roughly 15 percent growth rate versus the group average of 12 percent; their returning capital is better than any other name in the space; they've got a global presence where they've done a great job hedging the ; and they have a solid cash flow," he said.
Seaburg expects Nike to grow earnings per share to $6 and then double its dividend over the next four years, which could propel the stock north of $150 per share, or roughly 50 percent higher by 2019.
"Again, I think Nike has a really solid growth story put in place to weather the storm in the face of rates rising," he said. "I think it's a stock you want to own."
Want to be a part of the Trading Nation? If you'd like to call into our live Monday show, email your name, number, and a question to TradingNation@cnbc.com
