I think the stock market is currently overbought and poised for a pullback. But as long as the global economic recovery remains on track, you can still trust in high quality, undervalued blue chips.

Among the most appealing blue-chip bargains in today’s uncertain investment climate is Flowserve (FLS), an industrial firm that’s a play on the global economic recovery.

Even as investors worry this year that global economic growth is slowing, Flowserve’s dominant market position and improving operating efficiencies give it an inherent ability to stay on its feet when the broader market stumbles.

Based in Irving, Texas, Flowserve makes industrial machinery, including things like steam pumps, control valves and related equipment used to control the flow of liquids and gases. The company also provides comprehensive maintenance services for the after market.

Stable, Not Sexy

This business may sound pretty boring, but with more than 18,000 employees in 50 countries and a market cap of $9 billion, Flowserve’s products form the heart of modern industry. It serves a range of sectors, including energy, power generation, mining, and aerospace.

Flowserve stock may not be as sexy as high-tech names from Silicon Valley, but it provides stability combined with long-term growth. That’s something investors should covet — especially in a bull market that’s already more than five years old and due for a breather.

In addition to getting a lift from the economic recovery, Flowserve is also hiking operating margins by cutting inefficiencies from its sprawling global supply chain. These initiatives differentiate the company from such sprawling competitors as Parker-Hannifin (PH).

As companies expand into remote regions, Flowserve is expanding with them. The company is implementing inventory innovations that allow customers to get the right part at the right time, resulting in a boost to operating efficiencies for both Flowserve and its end users.

Pumping Profits

Flowserve’s third-quarter 2014 revenue came in at $1.2 billion, a drop of 2% from the $1.23 billion posted in the year-ago quarter. However, largely driven by the company’s successful cost containment efforts, Flowserve reported third-quarter earnings per share (EPS) of 93 cents, an increase of 3.3% from the 90 cents in EPS in the same period a year ago.

Flowserve’s bookings hit $1.3 billion — a year-over-year gain of 3.7% — fueled by strength in its original equipment and after market segments.

Key engines of growth for the company are China and the Asia-Pacific region. The Middle Kingdom is a major customer of Flowserve’s products, especially as the government plows major resources into infrastructure development throughout its provinces. Regardless of China’s lower economic growth numbers, the country is committed to massive and sustained infrastructure spending.

Plus, the global push for greater power generation capacity, especially in developing nations, should also stoke demand for Flowserve’s offerings over the long haul.

Nonetheless, the stock has traded lower this year as global economic growth has slowed. Now at $67 a share, down from this year’s high of $80 posted in February, Flowserve’s 12-month trailing price-to-earnings (P/E) ratio is only 18.6. That compares favorably to the trailing P/E of 22.7 for its sector of diversified machinery.

Flowserve is a play on economic recovery that also offers a measure of safety in a turbulent market. Investors can enjoy “defensive growth” from the stock because of Flowserve’s dominant market position, entrenched global relationships, solid operational efficiencies, and long history developing the basic equipment that modern industry needs to function.

And the stock is now cheap to boot. Flowserve will be pumping profits for investors into the foreseeable future.

As of this writing, John Persinos did not hold a position in any of the aforementioned securities.