With Its E-commerce Efforts on the Rise, Walmart is One of the Top Picks

Walmart’s continued push into the e-commerce space is shaping up to be a major growth driver for its stock, according to a recent report by Mizuho Securities. The investment firm has now identified the retail giant as one of its top stock picks, thanks to its ongoing transformation into a more tech-driven company.

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Mizuho raised its price target for Walmart shares from $105 to $115, signaling a potential upside of nearly 18% from current levels. This move comes as the firm gains confidence in Walmart’s evolving strategy and its increasing dominance in the online retail space.

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David Bellinger, an analyst at Mizuho, highlighted that Walmart’s multi-year overhaul is paying off. The company has shifted from being just a traditional retailer to embracing technology at its core. According to Bellinger, the focus on faster delivery and growing sales volumes is setting the stage for substantial gains in the years ahead.

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“Walmart is on track to generate more than $100 billion annually in U.S. e-commerce revenue,” he said. That figure would represent around 10% of all online retail sales in the U.S., making Walmart the second-largest player in the domestic e-commerce market—trailing only Amazon. The scale of that achievement, Bellinger emphasized, positions Walmart as a serious force in the digital retail landscape.

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Because of this shift, Mizuho is reevaluating Walmart’s place in the market and now sees it as one of the dominant digital competitors in a highly competitive industry. The firm also sees long-term potential in several of Walmart’s newer business lines. Bellinger pointed to advertising, its online marketplace, and its membership program as key growth drivers that could meaningfully boost earnings.

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“We continue to see a path toward over $4 in earnings per share,” Bellinger noted. He explained that these complementary digital initiatives are not just growing quickly, but they’re also highly profitable, which could enhance Walmart’s earnings power over time.

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Following the Mizuho upgrade, Walmart shares saw a modest uptick in premarket trading. For the year so far, Walmart stock has gained nearly 8%, reflecting strong investor confidence and consistent performance.

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Analysts on Wall Street appear to agree with Mizuho’s upbeat outlook. Data from LSEG (formerly known as Refinitiv) reveals a near-unanimous bullish stance among analysts who cover the stock. Of the 44 analysts tracking Walmart, 43 rate the stock either a “buy” or “strong buy.” Only one analyst currently maintains a “hold” rating.

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This level of confidence stems from Walmart’s ability to pivot and adapt as retail shifts increasingly online. Over the years, the company has invested heavily in technology, fulfillment centers, and digital infrastructure to compete more effectively in the modern retail space.

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In particular, Walmart has focused on enhancing its delivery speed, improving its mobile and web platforms, and leveraging its vast store footprint for convenient order pickup and same-day delivery services.

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Its growing e-commerce operations are now a critical piece of its broader strategy. Walmart’s online platform not only sells its own inventory but also hosts third-party sellers through its marketplace, allowing it to compete more directly with Amazon. This marketplace approach has the added benefit of generating higher-margin revenue, as Walmart takes a percentage of sales without carrying the inventory risk.

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Additionally, Walmart has been ramping up its advertising efforts through Walmart Connect, its retail media network. This business allows brands to advertise their products directly to Walmart customers across its digital properties, similar to how Amazon has built a massive ad business. The ad segment, still in its early stages, is seen as a high-growth, high-margin opportunity that could significantly boost the company’s bottom line.

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Membership is another area of potential. Walmart+—the retailer’s subscription service—offers benefits like free delivery and discounts on fuel. While it still trails Amazon Prime in total members, Walmart+ is growing and helps drive customer loyalty, repeat purchases, and higher average spending per user.

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With a powerful combination of digital expansion, new business segments, and a strong physical store network, Walmart appears well-positioned to continue thriving in a changing retail environment. Mizuho’s bullish stance suggests that investors may want to look at the retail giant with fresh eyes—as not just a legacy brick-and-mortar name, but as a formidable player in the tech-powered future of commerce.

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