Please ensure Javascript is enabled for purposes of website accessibility

What Must Investors Watch With Nuance Communications?

By Andrew Tonner - Apr 11, 2013 at 3:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

What are the key things for investors to watch with this giant of speech-recognition software?

Nuance Communications (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?

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

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

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
334%
 
S&P 500 Returns
117%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.