Walmart(US:WMT) ZACKS·2025-11-04 15:26Core Insights - Walmart Inc.'s U.S. segment experienced a 4.6% increase in comparable sales for Q2 of fiscal 2026, indicating strong consumer engagement in essential categories [1] - Net sales for the U.S. segment reached $120.9 billion, reflecting a 4.8% year-over-year increase, driven by both transaction volume and average ticket size [1] - Digital engagement significantly contributed to sales growth, with e-commerce sales rising 26% year-over-year, adding approximately 420 basis points to comparable sales performance [3] Sales Performance - Grocery remained the primary growth driver, achieving mid-single digit gains, while health and wellness categories accelerated at a mid-teens growth rate [2] - General merchandise sales experienced low single-digit growth but faced deflationary pressures [2] - Walmart's operational execution, including inventory management, supported the overall sales performance [4] E-commerce and Digital Strategy - Nearly half of Walmart's online orders were fulfilled from stores, with delivery volumes increasing by nearly 50% [3] - One-third of store deliveries were completed within three hours, enhancing Walmart's competitive edge in the omnichannel space [3] - Advertising momentum on the Walmart Connect platform further bolstered digital sales productivity [3] Competitive Landscape - Kroger reported a 3.4% increase in identical sales without fuel for Q2 of fiscal 2025, driven by pharmacy, e-commerce, and fresh categories [5] - Costco's net sales for Q4 of fiscal 2025 reached $84.4 billion, with comparable sales up 5.7%, supported by grocery and fresh categories [6] Stock Performance and Valuation - Walmart's stock price has increased by 12.4% year-to-date, outperforming the industry growth of 11.7% [7] - The forward price-to-earnings ratio for Walmart is 35.66, higher than the industry average of 32.41 [10] - The Zacks Consensus Estimate projects year-over-year earnings growth of 3.6% for fiscal 2026 and 12.5% for fiscal 2027 [13]