Surmodics, Inc. SRDX has been gaining on the back of its solid prospects in the thrombectomy business over the past few months. A robust third-quarter fiscal 2022 performance and consistent efforts to boost research and development (R&D) are expected to contribute further. Yet, concerns related to regulatory headwinds and data security threats persist.Over the past year, this Zacks Rank #3 (Hold) stock has lost 46.4% compared with 50.6% decline of the industry and 17.1% fall of the S&P 500 composite.The renowned medical device and in-vitro diagnostics (IVD) technology provider has a market capitalization of $408.9 million. Surmodics projects 135.2% growth for fiscal 2023, expecting to maintain its strong performance. SRDX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 41.9%.Image Source: Zacks Investment ResearchLet’s delve deeper.Consistent Efforts to Boost R&D: Surmodics’ solid efforts to improve its R&D stature have been a key growth driver, which raises our optimism. The company’s whole product solutions pipeline and sirolimus-based below-the-knee drug-coated balloon (DCB) program deserve a mention. Surmodics has been making progress using its internally developed .014 balloon platform.During the third quarter of fiscal 2022 earnings call in July, Surmodics confirmed that it is currently assessing the next steps for the clinical development and future commercialization of the Sundance DCB, for which a multinational strategic partner has expressed interest.Thrombectomy Prospects Bright: Surmodics’ aim to leverage its proprietary Pounce thrombectomy platform technology to develop products raises our optimism. Surmodics’ Product Sales of its medical devices in the fiscal 2022 third quarter grew 64% year over year, including contract manufactured balloon catheters, specialty catheters partnered with Cook and Medtronic, and its Pounce Arterial Thrombectomy and Sublime Radial device products. Surmodics’ Medical Device business product revenue grew 23% on broad-based growth across Medical Device products and coating reagents with growing contribution from the Pounce Arterial and Sublime Radial commercialization efforts.Strong Q3 Results: Surmodics’ better-than-expected earnings in third-quarter fiscal 2022 buoy optimism about the stock. Its quarterly revenues were also in line with management expectations. The company registered robust Product sales growth on the back of continued demand for its medical devices and IVD products. Surmodics confirmed making crucial progress on its SurVeil DCB pre-market approval submission. The gross margin expansion bodes well.DownsidesRegulatory Headwinds: Surmodics’ products and business activities are subject to complex regulations worldwide. However, failing to comply with these legal and regulatory requirements could impact the company’s business. Surmodics anticipates that governmental authorities will continue to scrutinize the industry it operates closely and those additional regulations may increase compliance and legal costs.Data Security Threats: Surmodics collects and stores sensitive data, including its proprietary business information, on its networks. The secure maintenance of this information is critical to its operations and business strategy. Despite Surmodics’ security measures, its information technology and infrastructure may be vulnerable to attacks by hackers resulting from employee error, malfeasance or other disruptions.Estimate TrendSurmodics is witnessing a positive estimate revision trend for fiscal 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has narrowed from a loss of $1.15 to $1.08 per share.The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2022 revenues is pegged at $24.9 million, suggesting a 4.2% improvement from the year-ago reported number.Key PicksSome better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.AMN Healthcare, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.7%.You can see the complete list of today’s Zacks #1 Rank stocks here.AMN Healthcare has lost 7.5% compared with the industry’s 39.5% fall in the past year.ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.ShockWave Medical has gained 21.8% against the industry’s 35.1% decline over the past year.McKesson, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 13%.McKesson has gained 69.3% against the industry’s 17.9% decline over the past year. Just Released: Zacks Unveils the Top 5 EV Stocks for 2022 For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.>>Send me my free report revealing the top 5 EV stocksWant 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 McKesson Corporation (MCK): Free Stock Analysis Report Surmodics, Inc. (SRDX): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report ShockWave Medical, Inc. (SWAV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research