"Thanks to the African swine fever epidemic in China, I think Tyson Foods is poised to be the biggest winner from the phase one trade deal, or at least in the wake of it," the "Mad Money" host said of a breakthrough in U.S.-China trade relations.
"This is the mother of all catalysts, people, and while the stock had a big move last year, I'm betting it's still got a lot more room to run," he said.
Chinese Vice Premier Liu He will visit Washington, D.C., next week to sign the phase one agreement between the two countries, according to The Wall Street Journal. The nations have engaged in a trade war for almost two years. As part of the deal, Beijing would boost its agricultural buys.
China is facing a pork shortage due to African swine fever, which has depleted supply. Pork is a staple in the country, and the American market is the only one that can fulfill the looming demand. Tyson Foods is the largest U.S. meat processor and China is a big opportunity for the company, Cramer said.
As the major indexes continue to set new highs, the host said Tyson Foods is a stock that can be bought "without feeling as though you're chasing this market like a chump."
"At times like this, we want companies with powerful catalysts and stocks that don't fully reflect their underlying strength," he said.
Last year, China's pork supply depleted by more than half and prices ballooned 110% in November. A month later, Tyson Foods received the U.S. government's blessing to sell into China as progress was made in trade talks.
Tyson Foods is projected to bring in almost $45.7 billion of revenue and yield $6.78 in earnings per share this fiscal year ending in September, according to FactSet.
"So the bull case here is very simple: Thanks to the ... trade deal and the [pork shortage] ... Tyson's earnings estimates are too low. The stock's already darned cheap, trading at 12 times next year's earnings estimates," Cramer said, "but if I'm right, those earnings estimates will come in higher than expected. That means the stock's going to look even cheaper in retrospect."
Shares of Tyson Foods slipped to $89.05 at Thursday's close.
Disclosure: Cramer's charitable trust owns shares of Tyson Foods.