Walmart Inc. WMT continues to strengthen its digital retail business through investments in artificial intelligence (AI), automation and omnichannel capabilities. The retailer is increasingly using technology to simplify shopping, improve convenience and strengthen customer engagement. Its expanding AI capabilities could also help Walmart capitalize on evolving shopping preferences while creating additional opportunities for e-commerce growth.
Building on this strategy, Walmart recently announced Agent Profiles, Walmart Agent Gateway and dedicated operating rules for AI shopping agents. These initiatives are designed to enable customers to shop through third-party AI assistants while retaining control over purchases. Agent Profiles, expected to launch in November, will allow customers to set spending limits, authorize transactions and monitor purchases made by individual agents.
Meanwhile, Walmart Agent Gateway aims to streamline interactions between AI assistants and its shopping platform. The technology is being developed to help agents identify customers' preferred products without requiring access to their broader purchase histories. By simplifying routine purchases, these capabilities could encourage shopping frequency, improve convenience and strengthen customer loyalty.
Walmart's digital momentum provides a solid foundation for these initiatives. In second-quarter fiscal 2027, global e-commerce sales increased 23%, including 24% growth at Walmart U.S. Marketplace sales surged 52%, while global advertising revenues advanced 38%. Meanwhile, usage of its AI shopping assistant, Sparky, rose 70% year over year, with users spending 40% more per order than nonusers.
Walmart's growing AI ecosystem could further strengthen its competitive position by making product discovery and repeat purchases more convenient. Combined with its broad assortment, competitive pricing and fulfillment network, these capabilities may support sustained digital engagement and sales growth. However, the extent of the benefits will depend on customer adoption, effective execution and Walmart's ability to convert AI-driven shopping activity into profitable transactions.
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 14.8% over the past year compared with the industry’s growth of 13.5%. Costco shares have climbed 7.9%, while Target has surged 56.2% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 38.29, higher than the industry’s 35.1. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 15.75) while trading at a discount to Costco (43.55).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of 5.4% and 9.1%, 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.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Walmart Inc. (WMT): Free Stock Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).