Why Nuance Is Ready to Rebound

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 has earned a coveted 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.

Nuance facts

Headquarters (founded)

Burlington, Mass. (1992)

Market Cap

$5.9 billion

Industry

Application software

Trailing-12-Month Revenue

$1.8 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

Microsoft

MModal


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

On CAPS, 96% of the 5,959 members who have rated Nuance believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, TempoAllegro, succinctly summed up the bull case for our community:

Nuance Communications is at the forefront of voice recognition software. Soon our electronic devices will be recognizing our voices and responding to our commands. There are other huge, untapped markets such as text to voice, essentially allowing electronic books or words to be read to you. With plenty of applications education, security, and industries yet unseen, Nuance is likely to remain a part of my retirement portfolio even without a dividend at the moment.

Of course, that short pitch doesn't even come close to telling the entire story for Nuance. You're in luck, though. The Fool's brand-new premium report on Nuance looks at all sides of one of the most compelling technology plays in the market. You can grab your copy now, which comes with free updates for 12 months.

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 Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Nuance Communications. The Motley Fool owns shares of International Business Machines, Microsoft, and Nuance Communications. 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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