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 Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Nuance Communications fell 25 cents (-1.2%) to $20.27 on light volume. Throughout the day, 3.3 million shares of Nuance Communications exchanged hands as compared to its average daily volume of 4.9 million shares. The stock ranged in price between $20.15-$20.65 after having opened the day at $20.52 as compared to the previous trading day's close of $20.52. Other companies within the Technology sector that declined today were:
eOn Communications Corporation (
EONC), down 14.5%,
Concurrent Computer Corporation (
CCUR), down 10.4%,
Saba Software (
SABA), down 10.1%, and
WPCS International (
WPCS), down 9.9%.
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Nuance Communications, Inc. provides voice and language solutions for businesses and consumers worldwide. Nuance Communications has a market cap of $6.58 billion and is part of the computer software & services industry. The company has a P/E ratio of 37.8, above the S&P 500 P/E ratio of 17.7. Shares are down 8.1% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Nuance Communications a buy, no analysts rate it a sell, and six rate it a hold.
TheStreet Ratings rates Nuance Communications as a
hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income.
On the positive front,
Suntech Power Holdings (
STP), up 15.6%,
NII Holdings (
NIHD), up 15.5%,
VirnetX (
VHC), up 15.5%, and
Rubicon Technology (
RBCN), up 13.3%, were all gainers within the technology sector with
America Movil S.A.B. de C.V (
AMX) being today's featured technology sector leader.
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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