Why Nuance Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-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 and see what CAPS investors are saying about the stock right now.

Nuance facts

 

 

Headquarters (founded)

Burlington, Mass. (1992)

Market Cap

$6.3 billion

Industry

Application software

Trailing-12-Month Revenue

$6.3 billion

Management

Chairman/CEO Paul Ricci

CFO Thomas Beaudoin

Return on Equity (average, past 3 years)

2.7%

Cash/Debt

$961.1 million/$2.3 billion

Competitors

IBM (NYSE: IBM  )

MedQuist Holdings

Microsoft (NASDAQ: MSFT  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 6,002 members who have rated Nuance believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, NoOracleHere, tapped Nuance as a particularly sound turnaround opportunity:

The recent haircut makes this call easier. In the near future, computing is going [mobile]. But the weakness of [mobile] is the weakness in the keyboard/mouse solution. Touch screens go only so far, but what better method than to just talk to our devices? This is accentuated by trends in the on-line interactive area where natural language recognition is becoming more important. Further development in the image processing area is being driven by robotics, where scene evaluation is in its infancy. [Nuance] has a lot of work ahead.

Speech recognition is yet another nascent technology set to explode with the rise of tablets and smartphones, and no company is better poised to benefit from this coming boom than Nuance Communications. However, this growth story doesn't come without risks. The Motley Fool recently published a premium research report to break down what investors interested in Nuance absolutely have to understand before investing, so click here now to grab your copy today.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2328437, ~/Articles/ArticleHandler.aspx, 10/1/2014 10:21:34 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement