These stocks will be happy when there’s a trade deal

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A bag of Tyson Foods Inc. frozen chicken is arranged for a photograph in Tiskilwa, Illinois, U.S., on Thursday, May 5, 2016. Tyson is scheduled to release earnings figured on May 9.

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A bag of Tyson Foods Inc. frozen chicken is arranged for a photograph in Tiskilwa, Illinois, U.S., on Thursday, May 5, 2016. Tyson is scheduled to release earnings figured on May 9.

While the U.S. and China continue to build momentum towards a trade deal, Wall Street analysts are getting increasingly anxious awaiting a breakthrough.

Analysts say there are several companies who to stand to benefit in the event of the long awaited agreement. They include companies like Tyson Foods, Visa, Mastercard, NXP Semiconductors, Polaris Industries, and Navigator Holdings.

CNBC did a deep dive into recent sell-side research to find which trends analysts are watching for in their respective coverage universes.

Trade talk was definitely in the air at at an agriculture industry conference last week according to analysts at Credit Suisse. Robert Moskow, who covers Tyson Foods for the firm, was at the event and noted increasing chatter surrounding an outbreak of African Swine Fever in China. This “increases the likelihood that China will agree to a deal,” he said in a note to clients.

“ASF is likely to benefit Tyson because it can lead to more exports of U.S. pork and chicken leg quarters to China and because its Keystone business in China will benefit from local demand shifting into chicken and away from pork due to disease fears,” he said.

Shares of Tyson are up 1.73 percent on Thursday.

Credit card issuer’s Visa and Mastercard also stand to benefit on a positive trade outcome according to Loop Capital analyst Joseph Vafi. While the ag and manufacturing industries get all the attention when it comes to tariffs, “U.S. technology and services companies could also end up being a beneficiary,” he said.

If the U.S. can get China to compromise on the issue of intellectual property an, “unlikely ramification,” could be one that helps Visa and Mastercard gain entry in to the country, Vafi said.

Shares of both companies are trading lower.

Polaris Industries, which manufactures powersports vehicles, was upgraded by analysts at KeyBanc earlier this week. They cited, “tariff optionality,” as key reason for their call.

“New product or not, PII is also the largest beneficiary of the ‘tariff trade’ under our coverage, with $1.40+ tied up in tariff costs that could benefit the P&L in various forms,” analyst Brett Andress said in a note to clients.

The stock is up over 1 percent today to $95.98.

Here’s what else analysts are saying about companies waiting for a trade deal:



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