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

$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


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.

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

The article 4-Star Stocks Poised to Pop: Nuance Communications originally appeared on Fool.com.

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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