Investment research firm Muddy Waters claims St. Jude Medical (STJ)  products are not secure and can be hacked. This has put added pressure on the medical device maker as it reported third-quarter earnings in line with Street estimates.

What does this mean for you?

Answering Muddy Waters' allegations about its pacemakers, St. Jude said when it reported earnings late Wednesday it is working to create a Cyber Security Medical Advisory Board to vet the security of its medical devices. But what may be more reassuring to investors is the company's strong financial vitals.

For the quarter that ended September, St. Jude reported a 12% year-over-year jump in revenue, reaching $1.5 billion, matching analysts' estimates, according to Thomson Reuters. The company earned an adjusted profit of 99 cents per share, marking 2% increase, which missed analysts' forecast by 2 cents.

Sales of the company's Neuromodulation products, which help regulate nervous activity, grew 17% year over year to $141 million. Revenue in atrial fibrillation, which treats irregular heart rates that causes poor blood flow, grew 12% to $316 million. These segments comprise more than 40% of St. Jude's revenue.

St. Jude stock is down 1%, falling 2% in the past three months. That could change ahed of the company's proposed merger with Abbott Labs (ABT - Get Report) , which values St. Jude at around $85 per share.

St. Jude shares are trading on a forward multiple of 17, based on fiscal 2017 earnings-per-share estimates of $4.42, which is in line with the S&P 500 (SPX) index. Given the revenue and earnings growth rate, St. Jude deserves a multiple of 20, which places the stock at $88, or 12% above current levels and $3 higher than Abbott's buyout price. All told, there is plenty of value in St. Jude.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.