Growth comparison
Growth stocks: four different engines, four distinct trade-offs
Growth stocks here range from CenterPoint’s regulated buildout to CoStar’s expansion and T-Mobile’s cash generation. The catch: faster growth does not guarantee strong returns on capital, and the steadier operators carry their own risks.
Why these companies
- CenterPoint qualifies through reported revenue growth and a Houston network expansion opportunity, though translating planned investment into earnings depends on approvals, customer connections and cost recovery.
- CoStar qualifies through 18.6% revenue growth and a multi-category real-estate information business, but its current operating margin and ROIC are negative.
- Philip Morris qualifies through growth in a smoke-free product portfolio alongside a high-margin combustible business, with strong reported operating margin and ROIC.
- T-Mobile qualifies through revenue growth in wireless and broadband services, paired with a 10.2% trailing FCF yield and moderate reported risk.
The numbers
| Company | Price | Fair value | Upside | Verdict | Risk | Market cap | P/E (TTM) | FCF yield (TTM) | Revenue growth | Operating margin | ROIC | Net debt |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CENTERPOINT ENERGY INCCNP | USD 38.70 | USD 36.10 | -6.7% | Fairly Valued | Elevated risk | USD 24.1B | 22.5x | -11.1% | 8.3% | 22.6% | 5.3% | USD 20.5B |
| COSTAR GROUP, INC.CSGP | USD 29.64 | USD 25.97 | -12.4% | Fairly Valued | Elevated risk | USD 10.9B | 142.2x | 2.6% | 18.6% | -2.2% | -0.7% | USD -1.5B |
| Philip Morris International Inc.PM | USD 199.94 | USD 175.00 | -12.5% | Fairly Valued | Moderate risk | USD 302.3B | 27.8x | 4.2% | 7.3% | 36.6% | 30.2% | USD 44.1B |
| T-Mobile US, Inc.TMUS | USD 149.70 | USD 182.00 | +21.6% | Fairly Valued | Moderate risk | USD 180.2B | 17.4x | 10.2% | 8.5% | 20.7% | 9.9% | USD 80.7B |
Fair values and metrics are from each company's latest SageNoodle report; prices are the latest quotes on file (Fri, 09 Oct 2026 19:31:47 GMT). Each company is valued in its own quote currency.
CNP sells the promise of a larger Houston load, with the funding bill arriving first.
As of September 28, 2026, CNP was priced at USD 36.62, with 8.3% revenue growth, a 5.3% ROIC and USD 20.5 billion in net debt. CenterPoint says its expanded capital plan totals $66.7 billion for 2026 through 2035, and it has described large-load projects that could require new connections and system investment. For a reader comfortable with regulated infrastructure growth, the mechanism is clear: build or upgrade the network, then seek recovery through rates as projects become customers and enter the rate base.
What breaks itThe pipeline is not the same as energized demand or earned returns. Delayed approvals, connections or rate recovery—or higher financing costs—could leave the company carrying investment before it earns its keep; the company page also reports a -11.1% TTM FCF yield.
Full report: CenterPoint Energy stock: Houston’s load boom comes with a $66.7B bill (28 Sept 2026)
CSGP offers the fastest listed revenue growth, but profitability has yet to catch up.
As of September 28, 2026, CSGP was priced at USD 27.02, with 18.6% revenue growth, a -2.2% operating margin and a -0.7% ROIC. CoStar sells real-estate information, listings, marketing and software, including commercial and residential offerings, so its growth case rests on monetizing data and customer reach across several property categories. The report says Q2 2026 returned to operating profit, but one quarter does not erase the negative FY2025 margin and return on capital.
What breaks itThe business must turn revenue expansion into repeatable profit and cash generation while paying for products, data and customer reach. That conversion matters especially with a 142.2x TTM P/E and only a 2.6% FCF yield in the company figures.
Full report: CoStar stock: strong Q2, but today’s small move has no clear cause (28 Sept 2026)
PM pairs a cash-generative legacy business with a smoke-free transition.
As of September 28, 2026, PM was priced at USD 193.76, with 7.3% revenue growth, a 30.2% ROIC and USD 44.1 billion in net debt. PM sells combustibles alongside smoke-free products, principally IQOS heated tobacco and ZYN oral nicotine pouches. Its 36.6% operating margin and 30.2% ROIC make it the comparison’s strongest reported capital-return profile, while the strategic question is whether smoke-free categories can grow enough to offset pressure on combustible volumes.
What breaks itA slowdown in smoke-free adoption, regulatory or tax changes, or faster combustible-volume declines could weaken the transition case. The company figures also show a 4.2% FCF yield, so readers seeking a high current cash yield may prefer a different profile.
Full report: Philip Morris Hikes Dividend to $1.60, but Price Outpaces Value (19 Sept 2026)
TMUS brings the strongest listed cash yield, with competition and debt still in the picture.
As of September 28, 2026, TMUS was priced at USD 166.45, with an 10.2% FCF yield, 8.5% revenue growth and USD 80.7 billion in net debt. T-Mobile earns primarily from recurring wireless service fees, with mobile equipment sales and financing also contributing; its report describes fixed wireless and enterprise connectivity as additional revenue streams. This fits a reader who wants an established subscription business with substantial reported cash generation rather than a thesis that depends on a large, unconverted project pipeline.
What breaks itPromotional discounting could raise customer acquisition costs or pressure service margins, while debt servicing depends on continued cash generation. Subscriber saturation and churn are additional ways the growth and cash profile could disappoint.
Full report: T-Mobile US: Competitive Noise and Routine Rebound Leave the Core Intact (19 Sept 2026)
Which one fits you
CNP fits readers willing to underwrite regulated infrastructure spending and the wait for approvals and rate recovery. CSGP suits those comfortable with a growth-to-profit conversion still in progress, while PM fits readers who value strong current returns on capital but accept tobacco-transition and regulatory exposure. TMUS is the clearest match for readers prioritizing recurring service revenue and a higher reported FCF yield, provided they can live with competition and substantial net debt; these are different business trade-offs, not an upside ranking.