The 2 Best Healthcare Stocks to Buy in July 2018

Money Morning Quantitative Specialist Chris Johnson has two top picks for the best healthcare stocks to buy in July.

Chris' proprietary "Best in Breed" (BiB) system finds both aggressive companies and discovers undervalued sectors poised for massive gains.

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And his BiB system has uncovered breakout potential for the healthcare industry.

That led Chris to take a deep dive into the sector, and he came away with two healthcare stocks with huge upside potential...

The Best Healthcare Stock to Buy, No. 1: Eli Lilly and Co.

The first is Indianapolis-based Eli Lilly and Co. (NYSE: LLY).

On Feb. 9, LLY dropped to a three-year low. Since then, it's risen 16%. That climb moved the stock to trading higher than its 50-day and 200-day moving averages.

That sort of momentum - pushing it above its moving averages - is a sign the stock is heading even higher.

In fact, the trend lines just formed a "golden cross," one of the most bullish technical indicators investors can use. In a golden cross, the 50-day moving average rises higher than the 200-day moving average, a classic bullish sign.

The last time that happened was in February 2017 when LLY was in the midst of a killer rally that sent the market up 35% over a five-month stretch.

It gets even better. Short interest grew 20% over the past month, which means a short squeeze could push the stock even higher if the rally continues.

Given that all the signals are indicating more upside, Chris has a price target on LLY of $90 per share. That's slightly above the highs of October and December. That move might give a double if investors play the $85 call with an Aug. 17, 2018 expiration.

But LLY isn't the best healthcare stock on our list...