After so much waiting, investors have begun to focus again on company and economic fundamentals. And those fundamentals reflect slowing corporate earnings. Just this morning, for example,
lowered its earnings outlook for home improvement retailer
. Lehman cut its 2001 earnings estimate for the company to $1.40 a share from $1.45.
In a report, Lehman wrote, "While we believe HD is one of the finest names in retailing, we continue to reiterate our cautious outlook on the shares given the company's vulnerability to a potential slowdown in the housing market." Lehman has a 52-week price target of $55 on the stock.
issued a statement yesterday after the market closed reaffirming its estimates of 23% to 25% growth in earnings per share for fiscal 2001.
Shares of Home Depot were recently down 81 cents, or 2.1%, to $37.44 in Big Board activity.