Wall Street wasn't thrilled with the latest earnings update from (NYSE: WMT). Coming as it did on the cusp of the peak holiday shopping period, pro traders were apparently looking for more optimistic comments from the management team regarding the short-term growth forecast.

Yet Walmart in that report raised its 2023 outlook for a second straight quarter while showing some encouraging trends around market share and profits. Let's dive into three reasons why Wall Street overreacted by pushing the stock lower in the wake of that recent earnings report. These are green flags for Walmart's potential for the remainder of 2023.

Sales trends impressed for a third consecutive quarter. Walmart reported a 5% boost in comparable-store sales, marking just a slight slowdown from the prior quarter's 6% increase.

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Source Fool.com