Best Buy (BBY) Stock Gains in After-Hours Trading on Chairman's Retirement Announcement

NEW YORK (TheStreet) -- Shares of Best Buy were gaining 0.8% to $38.64 after-hours Monday after the electronics retailer announced that board chairman Hatim Tyabji will retire on June 9. Best Buy President and CEO Hubert Joly will succeed Tyabji and take on the role of chairman. Russell P Fradin, the President and CEO of SUnGuard and a member of Best Buy's board since April 2013, will take on the role of Lead Independent Director. Tyabji joined the Best Buy board in 1998, and served as the company's chairman since 2012. CEO Hubert Joly said, "I am honored to succeed him as Board chair and thank my colleagues on the Board for the confidence they have placed in me. I will do all that I can to live up to this honor as we continue to build an exciting, successful Best Buy that delivers growth for all stakeholders." TheStreet Ratings team rates BEST BUY CO INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: "We rate BEST BUY CO INC (BBY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 77.1% when compared to the same quarter one year prior, rising from $293.00 million to $519.00 million. BBY's revenue growth trails the industry average of 12.9%. Since the same quarter one year prior, revenues slightly increased by 1.3%. Growth in the company's revenue appears to have helped boost the earnings per share. Powered by its strong earnings growth of 72.94% and other important driving factors, this stock has surged by 41.48% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BBY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. Net operating cash flow has significantly increased by 50.77% to $1,161.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 21.70%. You can view the full analysis from the report here: BBY Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015

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