Nuance Communications Inc. (NUAN): Today's Featured Computer Software & Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Nuance Communications (NUAN) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Nuance Communications fell 34 cents (-1.5%) to $22.81 on average volume. Throughout the day, 3.1 million shares of Nuance Communications exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $22.61-$22.96 after having opened the day at $22.85 as compared to the previous trading day's close of $23.15. Other companies within the Computer Software & Services industry that declined today were: Chyron Corporation (CHYR), down 8.2%, Cimatron (CIMT), down 7.4%, PDF Solutions (PDFS), down 7.1%, and Attunity (ATTU), down 6.1%.

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Nuance Communications, Inc. provides voice and language solutions for businesses and consumers worldwide. Nuance Communications has a market cap of $7.24 billion and is part of the technology sector. The company has a P/E ratio of 35.5, above the S&P 500 P/E ratio of 17.7. Shares are up 4.1% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Nuance Communications a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Nuance Communications as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

• You can view the full Nuance Ratings Report.

On the positive front, Innovative Solutions and Support (ISSC), up 8.7%, Unwired Planet (UPIP), up 8.5%, ARC Document Solutions (ARC), up 7.5%, and Wave Systems Corporation (WAVX), up 6.2%, were all gainers within the computer software & services industry with Salesforce.com (CRM) being today's featured computer software & services industry leader.

• Use our computer software & services section to find industry-relevant news.
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For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx (IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology (REW).

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For more information on Nuance Communications Inc. click any of the following:

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• Nuance Communications Inc. Income Statement