An analyst estimates that a firm's 12-month trailing P/E ratio is 20.5 and its forward P/E ratio is 15.2. Based on his research, which of the following statements is/are correct? 1) The analyst expects a future increase in the firm's earnings 2) The analyst believes the stock is selling for 20.5 times its expected earnings over the next 12 months 3) The analyst used a higher estimate for the stock price when computing the trailing P/E ratio O 2 only O 1 & 3 only O 1 only O 3 only O 1 & 2 only O 2 & 3 only O 1, 2, & 3