Walmart Inc. WMT is building its marketplace into a broader part of its omnichannel platform by expanding assortment, increasing the use of Walmart Fulfillment Services and extending marketplace capabilities to additional markets. The second quarter of fiscal 2027 showed that marketplace growth remains strong as Walmart combines its digital reach with fulfillment infrastructure and a wider selection of products.
Walmart U.S. marketplace sales increased 52% in the second quarter of fiscal 2027. The company attributed the momentum to a broader marketplace assortment that includes more of the key brands customers want. Marketplace growth was also above 40% in key categories such as hardlines and home, including strength in furniture, pointing to continued expansion across important merchandise areas.
Fulfillment is playing a larger role in the marketplace business. Nearly 50% of U.S. marketplace volume flowed through Walmart Fulfillment Services during the quarter, an increase of nearly 400 basis points from a year earlier.
Walmart has also continued investing in automation, fulfillment capacity and its physical network to support both first-party and marketplace businesses and move inventory more efficiently. Walmart is now taking these capabilities into more markets. During the quarter, the company expanded capabilities from its U.S. marketplace platform into Mexico and Canada.
The latest results show that marketplace momentum is being supported by broader assortment, greater use of fulfillment services and geographic expansion. The key issue ahead is whether Walmart can maintain that pace as these marketplace capabilities scale across its broader retail platform.
What Do the Latest Metrics Say About Walmart?
Walmart, which competes with Costco Wholesale Corporation COST and Target Corporation TGT, has seen its shares gain 6.3% over the past year compared with the industry’s 4.8% growth. Shares of Costco have climbed 0.2%, while Target has surged 70% in the aforementioned period.
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From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 33.51, higher than the industry’s 30.67. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 16.73) while trading at a discount to Costco (42).
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The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of 5.3% and 8.7%, respectively.
Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).