NEW YORK (TheStreet) -- Shares of Under Armour (UA) - Get Report were tumbling 12.85% to $13.03 in Tuesday morning trading as investors worry about the sportswear retailer's growth prospects.

The company expects to spend $450 million this year as it invests in its retail base and corporate infrastructure, CFO Chip Molloy said on today's earnings conference call. Under Armour estimates revenue growth in the low-20% range in 2017 and 2018.

Under Armour shares were down sharply from a 52-week high of $49.40 ahead of earnings. This led CNBC's Carl Quintanilla to ask TheStreet's Jim Cramer on CNBC's "Squawk on the Street" whether the company had already paid a price going into today's trading session.

"Sometimes there is no price to pay if you're going to go up against Nike (NKE)," Cramer contended. "A wounded Nike is like a wounded tiger. Tigers don't usually eat humans; it's only when they're wounded."

Investors have claimed that a revitalized Adidas (ADDYY) and a Nike that's "on the ropes" will squeeze Under Armour in footwear especially, Cramer noted.

He added that he wouldn't want to be in a dog fight with Nike over footwear, as the company can "absorb a lot of pain."

TST Recommends

Automakers such as General Motors (GM), Ford (F) and Fiat Chrysler (FCAU) are in a separate dog fight, Cramer said.

"You're looking for non-dog fight situations," he stated. "Who's non-dog fight? Alphabet (GOOGL), Amazon (AMZN), Facebook (FB)."

(Under Armour is held in the Growth Seeker portfolio. See all of the holdings with a free trial.)

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.

Under Armour's strengths such as its robust revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures are countered by weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and premium valuation.

You can view the full analysis from the report here: UA

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.

Image placeholder title