On Apr 6, 2016, we issued an updated research report on California-based medical equipment manufacturer – ResMed Inc. RMD. The company is a pioneer in the development of generators, masks, and related accessories for the treatment of sleep-disordered breathing (SDB) and other respiratory disorders.The global market for SDB is huge and is, as yet, to a great extent, underpenetrated. With the market growing at a rapid pace, ResMed is leaving no stone unturned to expand its foothold therein. Notably, ResMed continues to rein in surging demand for its products for the treatment of SDB.As a step forward in this direction, in Feb 2016, ResMed announced the completion of the acquisition of Inova Labs Inc. – a privately-held medical device company that develops and commercializes innovative oxygen therapy productsMoreover, market data looks encouraging for ResMed in Oceania & ASEAN (Association of Southeast Asian Nations) respiratory markets where chronic respiratory diseases like Chronic Obstructive Pulmonary Diseases (COPD), asthma and OSA in both aging as well as young population are on the rise. We believe, with vast global reach and planned investment, ResMed is perfectly poised to reap the benefits from this huge and untapped market.In addition, the company is seeking new applications for significant unmet medical needs. Studies have established a clinical association between OSA and both stroke and congestive heart failure, and have recognized SDB as a cause of hypertension or high blood pressure. The company has developed a device for the treatment of Cheyne-Stokes breathing in patients with congestive heart failure. Thus, investment in research and development is now critical to the company’s business strategy.Further, ResMed currently has a strong cash balance, as evident from $269.5 million in cash flow from operations generated during the fiscal 2016 second quarter. The cash flow number reflected a year-over-year rise of 40%.On the flip side, reimbursement headwinds have been pressurizing medical device providers like ResMed with government as well as insurance organizations trying to reduce their cost vigorously. In addition, challenging macroeconomic events and competitive bidding continue to affect the stock.Currently, ResMed carries a Zacks Rank #2 (Buy).Key Picks in the SectorSome better-ranked stocks in the medical sector are LeMaitre Vascular, Inc. LMAT, Orthofix International N.V. OFIX and Baxter International Inc. BAX. While LeMaitre Vascular and Orthofix sport a Zacks Rank #1 (Strong Buy), Baxter holds a Zacks Rank #2.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RESMED INC (RMD): Free Stock Analysis Report BAXTER INTL (BAX): Free Stock Analysis Report ORTHOFIX INTL (OFIX): Free Stock Analysis Report LEMAITRE VASCLR (LMAT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research