Why Nuance Is Poised to Bounce Back

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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 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.

Nuancefacts

 

 

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

MedQuist Holdings

Microsoft


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.

The article Why Nuance Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Nuance Communications. It also owns shares of IBM and 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 Motley Fool has a disclosure policy.

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