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Home Depot's Blazing Profit Growth

By Demitri Kalogeropoulos - Feb 7, 2014 at 6:35PM

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Why this retailer could book a 20% bounce in earnings in 2014.

Home Depot (HD -0.24%) 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.

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