While Nike (NKE) - Get Report has been a great growth stock to own over the past few years, 2016 has not been kind to the athletic apparel maker. The stock is down almost 20% on the year. The company is set to report earnings on Tuesday.

There's very stiff competition against Nike, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said from the floor of the New York Stock Exchange on Monday.

Under Armour (UA) - Get Report has been tough. But making matters even worse has been the resurgence of Adidas, he explained. For all those years when Nike was doing well, it largely came at the expense of Adidas, he said.

The stock also received three downgrades last week, which doesn't bode well for the stock unless investors feel that the sentiment has turned too bearish. In that case, perhaps those investors should consider a long position, Cramer said, possibly with call options.

For Cramer, though, the concern still centers around the tough competition. That does bode well for Foot Locker (FL) - Get Report , which is his recommendation in the space.

Analysts expect Nike to earn 43 cents per share on $8.09 billion in revenue.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.