As a  student, you'll have a choice of international programs in countries around the world, as well as the chance to take classes on campus that include a travel component. You can even start your Princeton journey in another nation through the innovative Novogratz Bridge Year Program. And after you graduate, you'll have opportunities to engage globally through alumni service programs such as Princeton in Africa, Princeton in Asia and Princeton in Latin America. 

The Novogratz Bridge Year Program

Some students jump into an international experience right away before starting their first year on campus. As an incoming student, you can apply to spend nine months doing public service work abroad through the University's tuition-free Novogratz Bridge Year Program. This experiential "bridge" between high school and college gives you an opportunity to widen your perspective before you begin your first year.

As of fall 2023, the Novogratz Bridge Year Program will be hosted in six locations on four continents. Students live with local families while immersing themselves in the local culture, learning the language and serving the needs of the community. You might volunteer with a human rights or environmental project, tutor local children, teach IT skills — the opportunities vary by locale and the organizations with which Princeton partners. And you'll start your studies at Princeton with deep connections to a place other than home, and strong bonds with fellow students who have shared your experiences abroad.

Learn more about the Novogratz Bridge Year Program

A Semester or Year Abroad

As an undergraduate student in any major, you can choose from among more than 100 semester- or year-long study abroad programs in over 40 countries. Living and learning in another country for an extended period of time teaches you things you never knew about yourself and the world. It can provide you with new skills, confidence and the feeling of possibility. And while you further your academic studies, you may also discover new ideas and interests that will shape you for a lifetime.

With so many options to choose from, you'll get plenty of help deciding which program best fits your interests and goals. Students who receive financial aid continue to receive support from the University while studying abroad during the academic year. The Office of International Programs helps students decide why and where to study abroad and supports them on their journey. Study Abroad Global Ambassadors are available to tell you about their experiences and answer your questions.

Learn more about a semester or year abroad 

Summer Language Immersion 

The summer provides time for intensive language study abroad, allowing you to learn or master languages among the people who speak them and explore new cultures. Many language programs, such as Princeton in Munich, Princeton in Beijing, Princeton in Argentina or the Aix-en-Provence Program for French studies, are organized by academic departments.

Summer Internships Abroad

Learning abroad doesn't have to mean studying abroad. You can spend your summer as an international intern instead, working with an organization that matches your interests in any of more than 50 countries. From helping migrant families in rural Mexico to working on architecture projects in Dubai, the opportunities are varied and fascinating. 

The International Internship Program lets you live and work abroad during summer break and comes with a financial award that covers most expenses. You can gain valuable experience, expand your academic interests and immerse yourself in new languages and cultures, and explore possible career paths through internships in a wide variety of fields.

Learn more about being an intern abroad

PIIRS Global Seminars

How are Cuban writers and artists making sense of the changes in their society? What can you learn about contemporary Chinese society by experiencing it up-close? Every summer Princeton students head overseas through the PIIRS Global Seminars, traveling to fascinating locations with historical or political significance to explore a specific topic.

Each six-week seminar is designed and led by Princeton faculty, and each presents a unique program of study that relies on visiting the locale at the heart of its subject matter. Daily lectures by seminar faculty and guests, language classes, weekend excursions to sites relevant to the course, and community service make up the experience.

Explore the range of Global Seminars

Clearly defined purpose

There is no universal model to incorporate an international service-learning (ISL) component to an off-campus semester or interim. While we believe that the benefits from ISL are many, it should not be included for all study abroad programs. Before including service activities in an off-campus curriculum or itinerary, the purpose of such service must be clearly identified and known by all stakeholders in the program: directors, professors, students, and community partners. To avoid the dangers of short-term service projects, both students and community partners must be aware of (and possibly included in identifying) program goals regarding service and learning outcomes. Service goals will be community-centered, identifying standards of community development, various community actors and short and long-term outcomes of service. Learning goals will generally be student-centered, identifying outcomes regarding academic objectives, worldview development and personal growth.

Student Opinion

How Do You Feel About High School?

Scroll through some work by the winning students and educators who participated in our “What High School Is Like in 2023” multimedia challenge. Then tell us how well the collection captures your experiences.

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Introduction

There are a few things that I really like when it comes to putting money to work: industrial stocks, companies operating in the aerospace industry, and opportunities that offer growth at a reasonable price.

As it turns out, we're in luck, as I found another opportunity that combines all of these things!

Seeking Alpha just published a news article titled "Growth At A Reasonable Price Stocks For 2024 - Jefferies."

According to the article (emphasis added):

GARP -- growth at a reasonable price -- has performed well in the past two quarters, and it could be a driver for performance in 2024, according to a Jefferies' U.S.A. Equity Strategy report, published on Monday.

Jefferies analysts have seen valuations work "exceptionally well" over the last year, with the cheapest stocks in the Russell 2000 up 29% year-to-date.

"Over 60% of the periods we reviewed the spread vs. the Rusell 2000 has been positive," analysts said. "We think this factor will continue its strength in the new year."

Textron Inc. (NYSE:TXT) is on that list, one of America's largest aerospace players with a market cap of roughly $16 billion.

My most latest article on this company was written on May 9, 2022, when I used the title "Textron: A Post-Pandemic Winner." Since then, shares are up roughly 24%.

In this article, I'll take a closer look under the hood again, as I agree with Jefferies. Although Textron has a dividend yield of just 0.1%, it offers potential value through strong growth and a very attractive valuation, paving the road for buybacks.

So, let's get to it!

A Diversified Aerospace Giant

Textron is a diverse multinational company with global operations in aircraft, defense, industrial, and finance sectors.

The company operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance.

Unlike most defense companies I own in my portfolio (I have >25% defense exposure), Textron is very hardware-focused.

For example, Textron Aviation is a leader in general aviation, manufacturing and servicing Beechcraft, Cessna, and Hawker aircraft. The segment offers a range of products, including business jets, turboprop aircraft, military trainers, and defense aircraft.

Notable models include the Citation series and King Air. Textron Aviation also provides comprehensive aftermarket parts and services globally.

Then there's the Bell segment, which is fascinating as well.

Bell is a prominent supplier of military and commercial helicopters, tiltrotor aircraft, and related services.

The company serves both U.S. and international military customers and offers a diverse range of commercial helicopters for various applications.

With products like the Bell V-280, the company is competing for major contracts against some of my holdings, including Lockheed Martin (LMT).

Not only is Bell boosting production rates for this model, but it is also working on a commercial version that could be launched close to 2030.

Essentially, the company is developing the V-280 Valor for the U.S. Army's Future Long Range Assault Aircraft program and the Bell 360 Invictus for the U.S. Army's Future Attack Reconnaissance Aircraft program.

Meanwhile, the certification process for the 525 Relentless, Bell's first super medium commercial helicopter, is underway.

Moving over to the next segment, the Industrial segment covers Fuel Systems and Functional Components and Specialized Vehicles product lines.

Kautex, within this segment, is a leader in designing plastic fuel systems, safety systems, and cleaning systems for automotive applications.

The Specialized Vehicles product line includes a variety of recreational and utility vehicles.

Textron Systems focuses on developing and integrating products for military, government, and commercial customers. Offerings include unmanned aircraft systems, electronic systems, advanced marine craft, and specialized vehicles.

The M5, for example, is an unmanned tank with a wide range of capabilities. Given the way the modern battlefield is changing, I'm very bullish on this segment.

Last but not least, formed in 2022 after the acquisition of Pipistrel, Textron eAviation focuses on sustainable aviation solutions. Pipistrel, a key component of this segment, is known for manufacturing electrically powered aircraft.

The bottom line is that the company generates less than a quarter of its money from government contracts, which means it has substantially more cyclical risks than its pure-play defense peers.

With that said, there's some (relatively) bad news.

• TXT pays a $0.02 per share per quarter dividend. This translates to a yield of roughly 0.1%. This dividend has been kept consistent, meaning TXT is neither an income nor a dividend growth stock.
• Over the past ten years, TXT shares have returned just 150%. Although that's not a bad number, it underperforms the S&P 500 by a considerable margin. This was mainly due to the pandemic, which made it close to impossible for Textron to keep up with the market.

The good news is that Textron is doing well. Growth has rebounded, and its outlook is great, making it a player with an attractive valuation and the potential to beat the market going forward.

Textron's Deep Value

The pandemic started more than three years ago. It ended roughly two years ago, depending on our definition of "ended."

Regardless, Textron is back!

For example, in the third quarter, Textron experienced robust growth, with revenues up in Aviation, Industrial, and Systems.

Revenues at Textron Aviation reached $1.3 billion, marking a $171 million increase from the previous year's third quarter. Total organic growth was 14.7%.

The boost is attributed to higher volume and mix contributing $89 million and higher pricing accounting for $82 million. The segment profit for the third quarter stood at $160 million, reflecting a $29 million rise from the previous year.

This increase is primarily attributed to favorable pricing net of inflation ($39 million) and a $23 million favorable impact from higher volume and mix.

However, there was a $33 million unfavorable impact related to supply chain and labor inefficiencies.

Textron Systems saw revenues of $309 million, marking a $17 million increase from the previous year's third quarter, primarily due to higher volume. This increase translates to roughly 6% organic growth.

As we can see above, Bell reported revenues of $754 million, remaining flat compared to the third quarter of the previous year. The stagnation was offset by lower commercial helicopter volume but balanced by higher military volume.

The industrial segment saw 8.6% organic revenue, excluding currency headwinds.

This increase was attributed to higher volume and mix at both product lines, contributing $45 million and an $18 million favorable impact from pricing.

eAviation sales were up 40% organically. However, this segment is so small that it doesn't have a major impact. Also, total revenues of $7 million ended up in a segment loss of $19 million, reflecting R&D cost headwinds.

Total business revenues were $200 million higher compared to the prior-year quarter. This translates to a 6.5% increase.

Thanks to these developments, the company was able to grow earnings per share by 27%.

Digging a bit deeper, we find that the good news continues.

For example, the highlight of the quarter was a 12% increase in orders for the Aviation segment over the previous year, resulting in a substantial backlog growth of $521 million, reaching $7.4 billion.

Meanwhile, Bell got an order for 15 Bell 505 aircraft.

Additionally, Systems was chosen as one of four competitors to build a light robotic combat vehicle prototype for the army.

The expansion of Aerosonde SUAS operations with the U.S. Navy marked another success, with the award of three C-based systems aboard total combat ships.

All of this was also good news for buybacks.

In Q3, Textron spent $235 million to buy 3.1 million shares. YTD, the company bought 12.5 million shares for $885 million returned to shareholders.

The year-to-date number translates to almost 6% of its market cap!

Over the past ten years, TXT has bought back more than 30% of its shares.

Even better, going forward, we should expect aggressive buybacks to continue as the company hiked its guidance.

The new EPS range is set at $5.45 to $5.55.

Additionally, Textron continues to anticipate full-year manufacturing cash flow before pension contributions in the range of $900 million to $1 billion.

That's roughly 6.1% of its market cap.

On top of that, it helps that Textron has a very healthy balance sheet. This year, it is expected to end up with $1.5 billion in net debt. That's less than 1.0x EBITDA.

It has an investment-grade BBB credit rating, which means it can distribute almost every penny of free cash flow to shareholders.

Now, with regard to "growth at a reasonable price," let's move to the valuation.

Using the data in the chart below:

• TXT is expected to maintain high growth rates. This year, EPS is expected to grow by 38%, followed by 9% growth in 2024 and 10% growth in 2025.
• The stock is currently trading at a blended P/E ratio of 14.6x. The long-term normalized valuation is 18.3x.
• A return to that valuation would result in a fair price of $121, including expected EPS growth rates. That's 50% above the current price.

All things considered, while I do not have the research that Jefferies used, I can make the case that TXT offers great value at current prices.

If I didn't have so much defense exposure already, I would consider adding the TXT ticker to my portfolio, as I believe that it is in a good spot to generate outperforming total returns for many years to come.

Takeaway

Textron stands out as a Growth at a Reasonable Price ("GARP") gem with Jefferies' endorsement.

With a $16 billion market cap, Textron boasts industrial strength and aerospace prominence, while 3Q23 showed robust aviation growth, a $7.4 billion backlog, and aggressive buybacks.

Despite a modest 0.1% dividend, Textron's diversified operations and buybacks set it apart.

Trading at a P/E ratio of 14.6x, well below its normalized 18.3x, Textron presents a 50% upside potential, making it a compelling GARP opportunity for investors eyeing growth with an attractive valuation.

Student Opinion

How Do You Feel About High School?

Scroll through some work by the winning students and educators who participated in our “What High School Is Like in 2023” multimedia challenge. Then tell us how well the collection captures your experiences.

 By