Nuance Communications Inc. (NUAN): Today's Featured Technology Winner

Nuance Communications ( NUAN) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 0.8%. By the end of trading, Nuance Communications rose 43 cents (1.9%) to $23.55 on average volume. Throughout the day, 5.6 million shares of Nuance Communications exchanged hands as compared to its average daily volume of four million shares. The stock ranged in a price between $23.19-$23.88 after having opened the day at $23.20 as compared to the previous trading day's close of $23.12. Other companies within the Technology sector that increased today were: SatCon Technology Corporation ( SATC), up 19.5%, Nexxus Lighting ( NEXS), up 13.2%, Velti ( VELT), up 11.9%, and icad ( ICAD), up 11.9%.

Nuance Communications, Inc. provides voice and language solutions for businesses and consumers worldwide. Nuance Communications has a market cap of $7.14 billion and is part of the computer software & services industry. The company has a P/E ratio of 90.5, above the average computer software & services industry P/E ratio of 89.2 and above the S&P 500 P/E ratio of 17.7. Shares are down 6.5% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Nuance Communications a buy, one analyst rates 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, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Envivio ( ENVI), down 56.5%, Groupon ( GRPN), down 27%, LiveDeal ( LIVE), down 20.5%, and Advanced Photonix ( API), down 15.3%, were all laggards within the technology sector with Dell ( DELL) being today's technology sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).
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