10 Best E-Commerce Stocks To Invest In

2. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 95

Walmart Inc. (NYSE:WMT) is one of the biggest retail companies in the world that operates retail outlets, wholesale units, and e-commerce sites in more than 20 countries serving over 240 million customers every week. The company’s e-commerce platform provides services to mass consumers, low-income customers, and small business owners. Walmart entered the e-commerce space in 2000 and reported $100 billion in e-commerce sales in the fiscal year 2024, up from $73 billion in FY 2022. Walmart Inc. (NYSE:WMT) is also a well-known brick-and-mortar retailer with 10,500 stores globally.

Sellers or small business owners sell all kinds of products on the Walmart Marketplace including staples, toys, and electronics. On the other hand, customers use it to purchase clothes, appliances, and furniture.

Walmart Inc. (NYSE:WMT) is a top e-commerce platform in the US and has over 255 million weekly users. The company currently operates 210 distribution centers and has a private fleet of 9,000 tractors, 80,000 trailers, and 11,000 drivers, all of which make quick deliveries possible. In the past 12 months, within the US, Walmart delivered 4.4 billion items on the same day or the next day, and 30% were delivered within three hours.

Walmart’s (NYSE:WMT) strengths are not limited to its stringent supply chain, but also its strong customer network. To enhance customer connection, the company launched the Walmart App, Curbside Pickup, and Built for Better, all of which facilitate consumers to buy products with ease.

The company’s journey to customer-centric innovation is not recent. In 2022, Walmart Inc. (NYSE:WMT) launched its Text to Shop AI tool to help customers add items to their cart by just chatting with a bot. Fast forward to FQ1 2025, the company launched a generative AI-powered product search tool and a data analytics platform allowing customers to shop more effectively and receive intuitive product recommendations based on their likes and dislikes.

Walmart’s e-commerce footprint is increasing, as evidenced by a 36% growth in sellers on its marketplace in the fiscal first quarter of 2025. As the company continues to integrate AI and make its platform more personalized for users, it can gain a higher share.

Analysts are bullish on WMT and their 12-month median price target of $81 points to an 8% upside from current levels. Overall, WMT was held by 95 hedge funds at the close of Q2 2024 with total stakes amounting to $9.19 billion. As of June 30, Fisher Asset Management was the largest shareholder with a position worth $3.08 billion.

WMT is currently trading at 30 times this year’s earnings estimate, higher than the sector’s forward P/E of 18. While there’s a premium here, analysts expect earnings to grow 21% this year to $2.45.