Despite the short-term risks Nuance is looking for growth in the automotive sector too. For example, Wintermute is a cloud-based mobile personal assistant tool that could be used offered in automobiles. The software can take natural language understanding from a mobile phone and provide assistance for its users.

Click on the interactive chart to see analyst ratings for these tech stocks over time. 

What matters most?

The biggest risk of buying a stock like Nuance is that everyone else is doing so too. If Carl Icahn remains a passive investor, then shares could remain low. Nuance continues to be a company in transition, and despite the near-term challenges, it may offer long-term upside.

New products with lots of innovation will mean stronger sales. Its strength in the health care field has yet to be fully appreciated. Still, health care organizations will likely adopt voice recognition, which would prove beneficial for Nuance shareholders.


(Written by Chris Lau, a Kapitall Writer. All data sourced from Zacks Investment Research.) 

If you liked this article you might like

How to Get Rich Using Warren Buffett's Favorite Stock Market Indicators

Stocks Claw Back From Session Lows as Markets Digest North Korea Threat

Top Apple Analyst: Don't Expect Long Lines for iPhone 8, But News Is Not All Bad