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Why would a stock underperform even if the eps and pe ratio are higher than the previous year?

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Question added by junaid ghaznavi , Manager Sales Planning & operations , Dewan Motors- BMW & Motorrad Pakistan
Date Posted: 2016/01/20
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by Deleted user

The earnings might have increased year on year but revenues might have fallen thereby increasing earnings per share and p/e but only cosmetically. Another possibility is that the stock market might by experiencing a downwards trend due to macro factors hence causing a selloff in all equities. 

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