Infinera Corp. (INFN), InvenSense Inc (INVN), Nuance Communications Inc. (NUAN): 3 Stocks to Indulge Your Bull Market Euphoria

Nuance Communications Inc. (NASDAQ:NUAN)

A voice recognition solutions company, Nuance Communications Inc. (NASDAQ:NUAN) provides healthcare, enterprise, and mobile with much-needed products. In mobile, Nuance is partnered with both Samsung and Apple, and should be able to profit from smartphones no matter who wins the smartphone war. Nuance Communications Inc. (NASDAQ:NUAN) is also breaking into the car industry by providing voice recognition technology to companies like Ford, GM, BMW, and Audi. In enterprise, Nuance has a service that can convert voicemails to a text message, and has already provided this service for AT&T, Vonage, and T-Mobile.

However, what’s truly revolutionary about Nuance Communications Inc. (NASDAQ:NUAN) is its ability to break into the US healthcare system. Physicians in the US have to do dictations for every one of their patients. Currently, those dictations are transcribed manually. However, Nuance technology is being adopted in hospitals to allow physicians to directly transcribe their own patient notes, saving mountains of money for hospitals. Moreover, Nuance has been integrated with more coding technology that allows easier input into hospital databases and medical records. As of the recent quarter, Nuance Communications Inc. (NASDAQ:NUAN) runs an annualized 5.2 billion lines in dictation, a significant barrier to entry for other voice recognition competitors.

In its most recent quarter, Nuance grew revenue 15.6% and declared a 500 million share repurchase (8% of their market cap). While they’re having trouble increasing their organic growth (currently focusing on consolidating their many acquisitions), they have a lot of natural growth in mobile and a solid barrier of entry in healthcare, which should provide a lot of value in the future, especially with their improved share repurchase plan.

If you’re an optimist and love a company that innovates, these three put a lot on the table. These are three stocks you’re likely to see a lot more of in the coming years.

Nikhil Shamapant has no position in any stocks mentioned. The Motley Fool recommends Infinera and Nuance Communications. The Motley Fool owns shares of Infinera , InvenSense, and Nuance Communications.

The article 3 Stocks to Indulge Your Bull Market Euphoria originally appeared on Fool.com and is written by Nikhil Shamapant.

Nikhil is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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