Finance: MORGAN STANLEY: These are the best stocks to own in 2018

The investment bank has a knack for stock picking. Last year's choices we're just behind the S&P average.

Every year, Morgan Stanley analysts comb through their wealth of research to find the stocks they're most bullish on for the next year.

Last year's list posted a return of 11.38%—roughly 1% behind the S&P 500's total return for the same period.

The team just released their eighth annual "vintage value" list for next year based on the following criteria:

We focused on stocks rated Overweight by our analysts that also were favored by our US Equity Strategy Team's “BEST” model, which ranks stocks by expected market-relative performance on a 24-month horizon.

We then narrowed our focus to stocks with a favorable risk/reward profile, paying close attention to the skew of the analysts’ Bull and Bear Case valuation estimates.

We then also considered the sector weighting recommendations of our US Equity Strategy team, led by Chief Strategist Michael Wilson.

Finally, we conferred with the analysts to confirm their conviction that each of these stocks is an attractive one-year buy-and-hold investment opportunity.

Here are the best stocks to own over the next 12 months, according to Morgan Stanley.

Alexion Pharmaceuticals (AXLN)

Current price: $126

Morgan Stanley price target: $141

Bank of America (BAC)

Current price: $24

Morgan Stanley price target: $26

Cisco Systems (C)

Current price: $31

Morgan Stanley price target: $39

Citigroup (C)

Current pice: $67

Morgan Stanley price target: $73

Constellation Brands (STZ)

Current price: $197

Morgan Stanley price target: $218

HP Inc. (HPQ)

Current price: $18

Morgan Stanley price target: $23

Jack in the Box Inc. (JACK)

Current price: $96

Morgan Stanley price target: $126

Johnson Controls (JCI)

Curent price: $44

Morgan Stanley price target: $51

Schlumberger (SLB)

Current price: $67

Morgan Stanley price target: $90

T-Mobile (TMUS)

Current price: $61

Morgan Stanley price target: $72

Viacom (VIAB)

Current price: $35

Morgan Stanley price target: $48

VMware (VMW)

Current price: $91

Morgan Stanley price target: $107

Voya Financial (VOYA)

Current price: $37

Morgan Stanley price target: $52

WESCO International (WCC)

Current price: $58

Morgan Stanley price target: $74

Zimmer Biomet (ZBH)

Current price: $132

Morgan Stanley price target: $137

American International Group (AIG)

Current price: $64

Morgan Stanley price target: $72

Amgen (AMGN)

Current price: $177

Morgan Stanley price target: $189

DXC Technology (DXC)

Current price: $78

Morgan Stanley price target: $85

IBM (IBM)

Current price: $152

Morgan Stanley price target: $248

L Brands (LB)

Current price: $46

Morgan Stanley price target: $61

Merck & Co (MRK)

Current price: $62

Morgan Stanley price target: $69

Verizon (VZ)

Current price: $43

Morgan Stanley price target: $53

Walgreens Boots Alliance (WBA)

Current price: $79

Morgan Stanley price target: $95

Wells Fargo (WFC)

Current price: $55

Morgan Stanley price target: $61

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