4-Star Stocks Poised to Pop: Nuance Communications

Updated

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 (NAS: 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

$6.5 billion

Industry

Application software

Trailing-12-Month Revenue

$1.5 billion

Management

Chairman/CEO Paul Ricci
CFO Thomas Beaudoin

Return on Equity (average, past 3 years)

0.4%

Cash/Debt

$976.9 million / $1.4 billion

Competitors

IBM
MedQuist Holdings
Microsoft


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

On CAPS, 96% of the 5,715 members who have rated Nuance believe the stock will outperform the S&P 500 going forward.

A few months ago, fellow Fool Anders Bylund (TMFZahrim) tapped the stock's recent slump as an attractive long-term opportunity:

Nuance hit a little speed bump and investors are treating it like a spike strip? Fine by me -- the company is a human-to-machine interface juggernaut that is just getting started. The long-term opportunity is larger than ever, just hidden behind those lumbering but unstoppable long-term mobile agreements.

If you want market-beating 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.

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

At the time thisarticle was published 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, as well as creating a bull call spread position in Microsoft. The Fool 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 Fool's disclosure policy always gets a perfect score.

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