Getting better returns from stocks is everyone’s dream. If you can get a software which can pick best stocks from a bunch, would you be willing to invest in it? PickStock 1.6 does just that. It uses Arbitrage Pricing Theory to find out which stocks are undervalued and which are overvalued. You need to provide historical data-base of price of the stock for the software to analyze. It then assigns weight age to different factors and then analyzes what should be the price.

You can put the data in Metastock text format. It also has the feature of handling text files and importing them into spreadsheets. The software is very useful for economists, stock analysts who can add their own analysis and find out the best pick. The software is also useful for researchers who want to test the theory on real data.

There are debates on the validity of the theory and hence the results may not be very accurate.