NEW YORK (TheStreet) -- Shares of Nike (NKE) - Get Report are advancing 2.26% to $54.29 in early-afternoon trading on Wednesday after reporting mixed results for the 2016 fourth quarter after yesterday's market close. 

The stock tumbled immediately after the sportswear retailer reported the results, but are rallying this morning as investors digest Nike's earnings conference call, TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning. 

He mentioned that the stock "did not get its due" from the market last night at $49 because Wall Street didn't listen to what CEO Mark Parker and Brand President Trevor Edwards had to say on the call.

Parker mentioned that Nike's focus will be driving potential across North America and western Europe, expanding leadership in China and across emerging markets and "to unleash the power of the Jordan brand across multiple categories, to accelerate our complete women's business, and to grow the young athletes business globally."

Cramer pointed out that CFO Andrew Campion was bullish as well, with Campion noting that China continues to be one of the world's biggest and fastest-growing markets in terms of consumption. Campion said China delivered "tremendous" revenue growth as well as strong gross margin expansion, which no one thought would be the case.

"You missed it if you decided to start trading before you got the numbers, and that's why Nike is up not down," Cramer said.

Additionally, Nike's direct to consumer business is "excellent" and its inventory is now clean, Cramer pointed out. 

The company will further benefit as the overhang from Sports Authority's bankruptcy dissipates in July and as the Lebron Soldier 10 and Kyrie Irving basketball shoes continue to sell well.

Lebron James led the Cleveland Cavaliers to win this year's NBA championship, and customers are more drawn to the shoe collections of players with the most momentum, Cramer explained in the above video. "That's very positive for Nike."

"When the stock is down 15% ahead of the quarter and drops another 4% after-hours so now you're down 19% on a senior growth stock which has the most iconic brand name in the world, it's an opportunity," Cramer stated. "And that's what people are seizing on."

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Nike's strengths such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity outweigh the fact that the company shows weak operating cash flow.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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