Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Nuance Communications

(

NUAN

) 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 $87.2 million.
  • NUAN is up 3.1% 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. NUAN has a PE ratio of 146.2. Currently there are 4 analysts that rate Nuance Communications a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Nuance Communications has been 4.9 million shares per day over the past 30 days. Nuance has a market cap of $5.0 billion and is part of the technology sector and computer software & services industry. Shares are down 28% year to date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Nuance Communications as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • Since the same quarter one year prior, revenues slightly increased by 8.8%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.88, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, NUAN has a quick ratio of 2.13, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization.
  • NUANCE COMMUNICATIONS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. 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 increased its bottom line by earning $0.64 versus $0.12 in the prior year. This year, the market expects an improvement in earnings ($1.32 versus $0.64).
  • The net income has significantly decreased by 144.1% when compared to the same quarter one year ago, falling from $79.26 million to -$34.97 million.

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