Quantcast

Should You Sell Nuance Communications (NUAN) Before Earnings?


Shutterstock photo

Investors are always looking for stocks that are poised to beat at earnings season and Nuance Communications, Inc. NUAN  may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Nuance Communications is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings-with the most up-to-date information possible-is a pretty good indicator of some favorable trends underneath the surface for NUAN in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at 27 cents per share for NUAN, compared to a broader Zacks Consensus Estimate of 24 cents per share. This suggests that analysts have very recently bumped up their estimates for NUAN, giving the stock a Zacks Earnings ESP of +9.29% heading into earnings season.

Nuance Communications, Inc. Price and EPS Surprise

Nuance Communications, Inc. Price and EPS Surprise | Nuance Communications, Inc. Quote

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here ).

Given that NUAN has a Zacks Rank #1 (Strong Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see  the complete list of today's Zacks #1 Rank stocks here .

Clearly, recent earnings estimate revisions suggest that good things are ahead for Nuance Communications, and that a beat might be in the cards for the upcoming report.

Zacks Top 10 Stocks for 2018

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?

Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2018 today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Nuance Communications, Inc. (NUAN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Earnings , Investing Ideas , Stocks
Referenced Symbols: NUAN



More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?