Undervalued Growth & Pipeline Powerhouses: Why LRN and AMGN Are Must-Buy Stocks Now

The stock market's current volatility has created rare opportunities for investors to capitalize on undervalued growth stocks and sector leaders with robust pipelines. Today, we turn our attention to Stride Inc. (NYSE: LRN) and Amgen Inc. (NASDAQ: AMGN)—two companies positioned to deliver outsized returns in 2025 and beyond. Let's dissect their fundamental valuations, growth trajectories, and the catalysts that make them compelling buys now.

Stride Inc. (LRN): The Undervalued Education Growth Engine

Stride has emerged as a standout in the online education sector, driven by soaring demand for career-focused training and K-12 alternatives. Recent Q1 2025 results underscore its momentum:
- Revenue surged 17.8% YoY to $613.4 million, fueled by 33% growth in career learning revenue (e.g., IT, healthcare certifications) and 13% growth in K-12 programs.
- Adjusted EBITDA jumped 40% to $168.3 million, with gross margins expanding to 40.6%—a testament to operational efficiency.
- Raised full-year guidance to $2.37–$2.385 billion, reflecting confidence in its 14% enrollment growth and strategic initiatives like the MedCerts-Albion College partnership.

Valuation & Entry Points
Stride's valuation metrics scream undervalued opportunity:
- PEG Ratio of 0.45: Suggests the stock is trading at a discount to its 14.28% annual earnings growth forecast, per InvestingPro.
- 33.5% discount to fair value (via BetterInvesting's Snowflake score), with a $158 price target (9.7% upside from current levels).
- Low beta (0.37) and institutional ownership of 98.24% signal stability and investor confidence.

Why Now?
- August 2025 Report Catalyst: With Q3 results expected to affirm its growth trajectory and enrollment trends, investors should position ahead of potential upside.
- Favorable Funding Environment: Less than 5% of revenue relies on federal funding, shielding Stride from policy headwinds.

Risk Factors: Monitor enrollment volatility and competition from peers like Bright Horizons (BFAM).

Amgen Inc. (AMGN): The Undervalued Biotech Leader with Pipeline Gold

Amgen's Q1 2025 results reaffirmed its dominance in biopharma, with revenue climbing 9% YoY to $8.1 billion and non-GAAP EPS up 24% to $4.90. But its true value lies in its world-class R&D pipeline, which includes:
- IMDELLTRA®: Phase 3 data showed improved survival in small-cell lung cancer (presented at ASCO in June 2025).
- UPLIZNA®: FDA-approved for IgG4-RD in April 2025, with a December 2025 PDUFA date for generalized myasthenia gravis (gMG).
- TEZSPIRE®: Phase 3 data for chronic rhinosinusitis with nasal polyps submitted, with a October 2025 PDUFA date.

Valuation & Entry Points
Amgen's valuation offers sector-leading upside:
- P/E Ratio of 19.8 vs. a 26.1 sector average, despite outperforming peers in profitability.
- Strong balance sheet: $57.4 billion debt reduced by $2.8B in Q1, with a $2.3B buyback program boosting shareholder returns.
- PEG Ratio of 1.4: While higher than Stride's, it's still reasonable given its diversified revenue streams and pipeline catalysts.

Why Now?
- Pipeline Catalysts: Key FDA decisions in 2025 (TEZSPIRE, UPLIZNA) could unlock multi-billion-dollar markets.
- Biosimilar Risks Mitigated: Management has hedged against competition via new product launches (e.g., IMDELLTRA in Japan).

Risk Factors: Monitor biosimilar erosion of Prolia®/XGEVA® sales and potential tariff impacts.

Market Timing: Seize the August 2025 Catalysts

Both stocks present high-conviction entry points ahead of key catalysts:
- Stride (LRN):
- Target: Buy dips below $145–$150 (near the 52-week low) or wait for post-Q3 earnings volatility.
- Rationale: A 33.5% discount to fair value and its secular growth in online education make it a buy-and-hold play.

• Amgen (AMGN):
• Target: Accumulate below $180 (near its 200-day moving average) or wait for FDA approvals to drive momentum.
• Rationale: Its dividend yield of 1.8% and pipeline-driven growth make it a stable core holding.

Conclusion: Don't Miss These Growth Powerhouses

Stride and Amgen are two pillars of their sectors, offering asymmetric upside through undervaluation and pipeline catalysts. Stride's 33.5% fair value discount and Amgen's sector-leading R&D make them buys for both growth and income portfolios.

Action Items:
1. Allocate to LRN at current levels or on dips, targeting $158–$160 in August.
2. Add AMGN below $180, with a $220–$230 price target by 2026.

The market's next move hinges on growth stocks with real, tangible catalysts—and these two are at the top of the list.

Investor Note: Always consider personal risk tolerance and consult a financial advisor before making investment decisions.