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4-Star Stocks Poised to Pop: Nuance Communications

By Brian D. Pacampara, CFA – Updated Apr 7, 2017 at 12:51PM

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Market-trouncing returns could be written in this 4-Star.

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's business and see what CAPS investors are saying about the stock right now.

Nuance facts

Headquarters (founded) Burlington, Mass. (1992)
Market Cap $7.8 billion
Industry Application software
Trailing-12-Month Revenue $1.6 billion
Management Chairman/CEO Paul Ricci
CFO Thomas Beaudoin
Return on Equity (average, past 3 years) 1.5%
Cash/Debt $539.6 million / $1.4 billion
Competitors IBM
Microsoft
MModal

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

On CAPS, 96% of the 5,744 members who have rated Nuance believe the stock will outperform the S&P 500 going forward.  

A few months ago, one of those Fools, Ares07, tapped the stock as a particularly attractive growth opportunity:

Voice recognition is the wave of future. Nuance's software, although a bit in its infancy, when refined, will change the world of computing. ... If you thought that the touchscreen revolution was big, wait till this one comes around. All people you know who complain about how hard it is to use a computer or touchscreen device will actually welcome this new wave of the future. I feel [Nuance will] become an industry standard, and explode once it becomes mainstream. It just needs a little refinement.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Nuance may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Nuance and Microsoft. Motley Fool newsletter services have recommended creating a synthetic long position in IBM and a synthetic covered call position in Microsoft. Try any of our Foolish newsletter services free for 30 days.

We Fools may not 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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Stocks Mentioned

Nuance Communications, Inc. Stock Quote
Nuance Communications, Inc.
NUAN

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