No matter what's going on in the market, and no matter a specific company's history, there are always reasons to consider buying shares in a business. After all, some of the best opportunities in stocks are born from historically bloody times.
Motley Fool CAPS hosts a boatload of opinions from more than 120,000 members on more than 5,400 stocks, giving good reasons to own -- or sell -- a stock.
In the case of speech specialist and Motley Fool Hidden Gems recommendation Nuance Communications (Nasdaq: NUAN), a total of 5,585 members have given a bullish or bearish opinion on the company. Scouring the detailed information packed in pitches and other comments, here are three of the top reasons investors give to buy Nuance today:
Gangbuster Growth: As demonstrated by its recent purchase of Philips’ (NYSE: PHG) voice recognition unit for $96 million, Nuance has made a habit of acquiring other companies -- it’s picked up 15 in the last three years. The additions have kept sales growing strong -- up more than 44% in the past year. Organic growth isn't too shabby, either; its eScription CAMT software for health-care organizations is now processing more than 1.4 billion lines of medical transcription per year, up 40% from a year ago.
Diversified Markets: Nuance has great potential because it plays in a number of sandboxes. A partnership with Microsoft (Nasdaq: MSFT) created Sync technology used in Ford (NYSE: F) cars, and its Dragon NaturallySpeaking software is used in industries like law, medical, education, and many others. A new deal with Nokia (NYSE: NOK) could bring in tens of millions of dollars in revenue over the next several years, joining wireless device makers like Motorola (NYSE: MOT) and Research In Motion (Nasdaq: RIMM) in making speech-based interaction a standard feature in mobile products.
Improving Financials: The company updated guidance for its fiscal 2008 fourth quarter, and investors liked the good news for a change. Nuance expects record cash flows from operations, is achieving its revenue goals, and is keeping expenses in check; it even has a plan to ease its rampant acquisition trend in the past.
Of course, there's a lot more devil in the details of these buy-side opinions, which is why CAPS is such a great resource to get the bullish and bearish sides on every stock. To see what the very best CAPS members are saying now about Nuance, just click on over to Motley Fool CAPS and have a look.
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