4-Star Stocks Poised to Pop: Nuance Communications

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, speech-software specialist Nuance Communications (Nasdaq: NUAN  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Nuance's business and see what CAPS investors are saying about the stock right now.

Nuance facts

   
Headquarters (Founded) Burlington, Mass. (1992)
Market Cap  
Industry Application software
Trailing-12-Month Revenue $1.16 billion
Management Chairman/CEO Paul Ricci
CFO Thomas Beaudoin
Return on Equity (Average, Past 3 Years) (1.2%)
Cash/Debt $559.42 million / $858.89 million
Competitors AT&T (NYSE: T  )
IBM (NYSE: IBM  )
Microsoft

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 5,622 members who have rated Nuance believe the stock will outperform the S&P 500 going forward. These bulls include mattar12 and Greenesthorn.

About two months ago, mattar12 tapped Nuance as a great way to go for growth: "[A]uto contracts, expanding to iphone/ipad apps. Their technology far exceeds its competitors for a high demand speech to text application."

Over the next five years, in fact, Nuance is expected to grow its bottom line at a solid rate of 12.5% annually. That's faster than much larger broad-sense rivals including AT&T (3.9%), IBM (11.2%), and Microsoft (10.3%).

CAPS member Greenesthorn expands on the Nuance investment case:

This is a good combination of high future potential and socially conscious investing. Voice control devices have to be a strong need for the future -- whenever that will be -- for all of us iphone-toting consumers tired of typing on tiny keyboards or worse. And an immediate need for those with special needs, like ALS patients.

What do you think Nuance, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Nuance is a Motley Fool Stock Advisor and Motley Fool Hidden Gems pick. AT&T is a Motley Fool Inside Value selection. Microsoft is also an Inside Value choice, and Motley Fool Options has recommended a diagonal call position on it. Alpha Newsletter Account, LLC, owns shares of Microsoft, too. The Fool owns shares of IBM and Microsoft. Try any of our Foolish newsletter services free for 30 days.

We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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