Steel Dynamics added as a new short at Hedgeye

Steel Dynamics (STLD) was added as a new short idea at Hedgeye.

"STLD has outperformed on the back of tariffs, reshoring, and the broader reindustrialization narratives, yet EPS remains roughly half of its 2022 peak," Hedgeye analyst Jay Van Sciver wrote in a note on Sunday.  "We struggle to find evidence that the US could reindustrialize over a reasonable investment horizon, at least in response to protectionist policies."

"We expect STLD to lag as investors reconcile returns, industry pricing, and valuations with narratives and industry capacity investments that fail to measure up," Van Sciver added. 

Shares of Steel Dynamics (STLD) ticked lower by 0.7%