Trade-Ideas: Nuance Communications (NUAN) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Nuance Communications as such a stock due to the following factors:
- NUAN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $95.6 million.
- NUAN is up 2.8% today from today's close.
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More details on NUAN:
Nuance Communications, Inc. provides voice and language solutions for businesses and consumers worldwide. Currently there are 5 analysts that rate Nuance Communications a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Nuance Communications has been 2.0 million shares per day over the past 30 days. Nuance has a market cap of $6.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.43 and a short float of 3.5% with 1.29 days to cover. Shares are up 46% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Nuance Communications as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 15.7%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- This stock has managed to rise its share value by 33.06% over the past twelve months. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- NUANCE COMMUNICATIONS INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NUANCE COMMUNICATIONS INC continued to lose money by earning -$0.37 versus -$0.47 in the prior year. This year, the market expects an improvement in earnings ($1.41 versus -$0.37).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, NUANCE COMMUNICATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 657.3% when compared to the same quarter one year ago, falling from -$1.46 million to -$11.03 million.
- You can view the full Nuance Communications Ratings Report.
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