Nuance Communications (NASDAQ: NUAN ) is a classic growth company. In this video, tech and telecom analyst Andrew Tonner outlines issues investors need to watch, particularly since the company trades at 38 times earnings. First, the expansion of voice recognition technology into consumer electronics. Will this be well received? Given Siri's reception, consumers may not be quite ready to talk to their devices. Second, will original equipment manufacturers continue rolling out voice recognition tech in their devices, especially if consumers are less than thrilled about talking to their devices? Will the automotive industry in particular continue integrating this tech into their products? And what role will voice recognition technology play in smart TVs? Finally, the health care industry is a major customer for Nuance. Will cost pressures continue to push adaptation of voice recognition tech in hospitals and other health care facilities?
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, too. 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.