Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, speech software provider 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

$2.55 billion


Application Software

TTM Revenue

$890.3 million


CEO Paul Ricci (since 2000)
CFO Thomas Beaudoin (since 2008)

Compound Annual Revenue Growth (over last three years)



Microsoft (NASDAQ:MSFT)
Cisco Systems (NASDAQ:CSCO)

CAPS members bullish on NUAN also bullish on (NASDAQ:CTRP)
Johnson & Johnson (NYSE:JNJ)

CAPS members bearish on NUAN also bearish on


Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 5,364 of the 5,597 members who have rated Nuance -- some 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include DargFool and All-Star LipniakMajorat, who is ranked in the top 2% of our community.

Last week, DargFool put the speech software maker's bull case in easy-to-understand terms: "Penetration in the medical marketplace, plus best of breed speech recognition will pay off as computing keeps getting cheaper and faster."

In a pitch from November, LipniakMajorat cites the downturn as particularly positive for the stock:

Bad economic environment may, paradoxically, help Nuance as it will prevent this Boston-based company from continuing its growth-through-acquisitions strategy and instead force it to downsize (some of it happened before the recent market turmoil) and focus on a proper integration of existing lines of business. Much of Nuance’s revenue, particularly from medical information solutions, speech recognition software and cell phone applications should not be terribly sensitive to consumer and capital spending. In fact, I expect that techs offering tangible productivity enhancing solutions will enjoy better times then the rest of the market.

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