Home Depot (NYSE:HD) logged one of the best profit-growth performances out of the 30 components in the Dow last year, as earnings rose by almost 25%. And, unlike most companies these days, the retailer achieved that result by boosting sales -- not just by cutting costs.
In the video below, Fool contributor Demitrios Kalogeropoulos puts Home Depot's recent results in perspective, arguing that a rebound in spending on home improvement could just be getting started -- a key reason why Wall Street expects another 20% boost in profits for Home Depot in 2014. Even better news, though, is the company's spiking returns on invested capital, which could approach 30% over the longer term.
Our top stock for 2014
Home Depot has been a good stock lately, but there's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.