Development stocks are always favored by investors. One such stock is Nuance (NASDAQ:NUAN), which has been consistently impressive on the stock business. Nuance has performed truly well this year with 15% development in revenue. Yet it may confront weakness because of high official compensation, an aggressive acquisition strategy, and steep obligation. So let us see why investors should purchase Nuance and what works against it from an investment perspective.
Nuance is seeing great times as a result of development in segments such as medicinal services, versatile and consumer, enterprise and imaging, thus recording 26% year-over-year development in bookings in the previous quarter.
Nuance has been impressive in the medicinal services segment with developments in its social insurance solutions such as Dragon Medical 360, Clintegrity 360, Powerscribe 360 and health awareness diagnostics that have prompted popularity from retail as well as wholesale customers. Nuance is making further advances here and expects better revenues later on as a result of the performance of its products such as machine assisted solutions and CLU-based solutions.
- Warning! GuruFocus has detected 2 Warning Signs with NUAN. Click here to check it out.
- NUAN 15-Year Financial Data
- The intrinsic value of NUAN
- Peter Lynch Chart of NUAN
With the fast-developing versatile and consumer market, Nuance is seeing extraordinary development opportunities. The organization is expecting positive trends later on with the late dispatch of Nina, which is an astute virtual assistant for its key customers such as Denso, Fiat, Fujitsu, GM, Hitachi, Kapsys, LG, Nokia, Samsung, Volvo and Yangfeng Visteon. Nina is picking up footing in the market, so Nuance is anticipating that it will turn into one of the essential development drivers.
Nuance is also taking a shot at enhancing its voice distinguishment engineering. Under this, the organization has propelled an enhanced version of Dragon Dictate for Mac. This change is drawing in numerous customers around the world. With such new innovations, Nuance is envisioning all the more better performance from its voice distinguishment innovation, pulling in more customers, along these lines seeing an increase in the top line later on.
As the world is moving towards virtualization and digitalization, Nuance is focusing on enhancing its imaging solutions. It is discovering great footing in this segment, giving imaging-based solutions to clients such as ABN AMRO Bank, Canon (CAJ), IKEA, Prince George, Ricoh, Stinson and Tetrapak. With such potential clients and aggressive moves, Nuance is anticipating that this segment will convey positive results in the long run.
At the same time Nuance also faces some weakness as a result of Apple, to whom it supplies innovation for Siri. Apple has captivated some of Nuance scientists to create it voice distinguishment. This may prompt weakness for Nuance. In spite of the fact that the organization is seeing development in revenue, its earnings are relied upon to drop this year.
Nuance is making numerous solid moves to keep up profitability. In line with this, the organization is investing a ton in creating new innovation. With such solid moves, Nuance is focused on minimizing the negative effects of Apple.
Despite Nuance's woes, the organization is well in-line with its objectives and has some energizing features in its pipeline which are relied upon to take off later on. At the same time losing on Apple and mismanagement may demonstrate dangerous. Investors should be cautious while investing in Nuance as this is one investment that could go sour.