FTSE 100 shares: I think this is the key to making money consistently

first_img If you’re looking to make consistent long-term profits from FTSE 100 stocks, there’s one thing, in particular, I think you should focus on.It’s not P/E ratios. Often, cheap FTSE 100 stocks just get cheaper. And it’s not dividend yields either. High yielders often turn out to be poor investments. Curious to know what it is? Read on and I’ll tell you…5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Making money from FTSE 100 sharesIn the short term, stocks can rise for many reasons. However, in the long run, share prices are driven by one thing – earnings growth.Companies that increase their earnings significantly over time tend to see big increases in their share prices. So the goal, as a long-term investor, should be to invest in companies that are nearly certain to increase their earnings substantially in the long run.Now, what’s the key driver of earnings growth? It’s revenue growth. If a company is growing its revenues, it’s generally much easier for that company to generate earnings growth. Conversely, if revenue growth has stalled, or revenues are falling, it’s much harder for a company to generate earnings growth.So before you buy a FTSE 100 stock because it’s cheap, or because it has an attractive dividend yield, stop and think about the company’s potential to generate long-term revenue growth.Ask yourself questions such as: Enter Your Email Address Edward Sheldon, CFA | Monday, 6th July, 2020 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images What’s going to drive this revenue growth going forward? Our 6 ‘Best Buys Now’ Shares FTSE 100 shares: I think this is the key to making money consistently “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img Edward Sheldon owns shares in Rightmove and JD Sports Fashion. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended Rightmove. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. See all posts by Edward Sheldon, CFA Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’ve stolen the last question from the book Common Stocks and Uncommon Profits, by Philip Fisher (who was a mentor to Warren Buffett). It’s a great question to ask when analysing a company.Find a company that has the potential to generate huge revenue growth in the years ahead, and you’ll automatically increase your chances of making a profit.FTSE 100 winners and losersAn analysis of revenue growth helps explain why some FTSE 100 companies have been excellent performers over time, and others have been poor performers.Companies such as BT Group, Vodafone, and Next, which have all struggled to generate any meaningful revenue growth in recent years, have underperformed in a big way.Meanwhile, companies such as London Stock Exchange, Rightmove, and JD Sports Fashion, which have generated strong revenue growth over the last five years, have all delivered fantastic gains for investors.Stack the odds in your favourOf course, when picking stocks there are many other things to focus on aside from revenue growth. A company’s profitability, balance sheet strength, and valuation are all important. Strong revenue growth doesn’t guarantee you’ll make a profit.However, by focusing on long-term revenue growth, you stack the odds in your favour. Find a FTSE 100 company that’s set for big revenue growth in the years ahead and the chances are you’ll profit from that company in the long run. Are this company’s revenues going to be considerably higher in five or 10 years’ time? Simply click below to discover how you can take advantage of this. Does the company have products or services with sufficient market potential to make a sizeable increase in sales for at least several years? I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.last_img

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