The game may be over in consumer electronics (CE) retailing, but does that make industry leader Best Buy (NYSE:BBY) an appealing candidate for Foolish portfolios? Not right now, it seems. A surprisingly putrid first quarter sent investors heading for the exits. But recent news from the company suggests that the longer-term picture remains resoundingly clear.

A little more than a week ago, Best Buy's chief financial officer presented at the William Blair 27th Annual Growth Stock Conference in Chicago. Read on to discover why Darren Jackson still considers the company a growth story.

Like retail titan Wal-Mart (NYSE:WMT), Best Buy appears to defy logic. It has consistently posted double-digit sales growth off an annual revenue base that now exceeds $37 billion. Wal-Mart's feat could be considered more impressive, since it's nearly 10 times larger than Best Buy, but consumer electronics is a very tough business. Best Buy has grown to control nearly 30% of the North American market, which Jackson estimated at $120 billion in total.

The growth game plan
Best Buy has also begun to reach into China with its Best Buy and Five Star brands, which Jackson sees as "a $100 billion opportunity" at the very least. Overall, Jackson estimated that "the entire market potential we see out there is ... $300 billion," suggesting that his company has captured slightly more than 10% of the global market. It plans on growing share by opening new stores, acquiring competitors, and pursuing "customer centricity."

What does that last term mean, exactly? While other big-box rivals such as Target (NYSE:TGT) and Costco (NASDAQ:COST) are successfully stealing Best Buy's thunder by selling the hottest flat-panel televisions and Apple (NASDAQ:AAPL) iPods, Jackson suggested that "there are types of customers that look for different types of shopping experiences." Best Buy is differentiating itself with hands-on service, to help customers better understand exactly what they're buying. It's also offering home-delivery options and help with installation and setup of its pricey goods. Best Buy also sees potential in its 20 million Reward Zone cards, and in the financial-services options for which loyal customers might be willing to pay. Rival Conn's (NASDAQ:CONN), for example, does big business by allowing customers to take out loans to pay for its merchandise.

To make up for a tough first quarter, Jackson alluded to further share buybacks. The company confirmed that strategy late last week, hiking its dividend 30% while announcing a new $5.5 billion program. The new round of buybacks could conceivably cover nearly one-fourth of Best Buy's $22.4 billion market cap. The company also now believes that the United States could support as many as 1,400 big-box superstores, since Best Buy's currently approaching the 1,000 stores it originally estimated the U.S. could support.

The Foolish bottom line
I'll refer you to Friday's Dueling Fools debate to decide whether the stock deserves a further look at current levels. Based on Jackson's presentation, Best Buy seems to have plenty of remaining expansion opportunities. It also appears to have enough cash flow to fund those initiatives, while still returning capital to shareholders through higher dividends and generous share buybacks.

Tougher current trends in Best Buy's home theater business, and lower profitability in the Chinese market, caused the company to lower earnings guidance for the year to $2.95 to $3.15 per share. That's a forward price-to-earnings ratio of just more than 15, which could prove a decent entry point into a firm that dominates its industry and posts high returns on invested capital -- an impressive feat in the hypercompetitive consumer electronics market.

For related Foolishness:

Costco and Best Buy are Stock Advisor selections. Wal-Mart is a Motley Fool Inside Value recommendation. Both market-beating newsletters are available for a free 30-day trial.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.