Why Digital and Delivery Speed Could Be Walmart's Secret Weapon

Core Insights - Walmart Inc. is focused on delivering products faster and reaching more households, aiming for 95% of the U.S. population to have access to delivery in three hours or less, with a 91% increase in such deliveries in Q1 of fiscal 2026 [1][8] - The store-fulfilled model allows Walmart to reduce transportation costs and delivery times, achieving e-commerce profitability for the first time in both U.S. and global operations [2] - Internationally, Walmart is also seeing success, with 45% of same or next-day deliveries arriving in under three hours, particularly in high-growth markets like China and India [3][8] - The rapid fulfillment capability enhances Walmart's omnichannel ecosystem, driving customer loyalty and boosting digital sales, which grew 22% in the last reported quarter [4] Competitive Landscape - Costco's e-commerce comparable sales rose 14.8% in Q3 of fiscal 2025, with a 31% year-over-year increase in big and bulky e-commerce deliveries [5] - Target's digital sales increased by 4.7% year over year in Q1 of fiscal 2025, with over 70% of digital orders fulfilled within a day, enhancing customer convenience [6] Financial Metrics - Walmart's shares have increased by 51% over the past year, outperforming the industry growth of 50.2% [7] - The forward 12-month price-to-earnings ratio for Walmart is 37.64, compared to the industry's 34.56, with a Value Score of C [9] - The Zacks Consensus Estimate indicates a year-over-year sales growth of 3.5% and earnings per share growth of 3.6% for the current financial year [10]