By Lou Gagliardi, Cabot Global Energy Investor

Oil service supplier Flowserve (FLS) is driving ahead of its peers with a strong balance sheet, stock buyback program and robust dividend growth. The company's long-term market growth potential is attractive and the stock's technical indicators are bullish.

In a nutshell, Flowserve develops, manufactures and sells precision-engineered​ flow control equipment. With pipeline companies seeking to build capacity in the U.S., demand has been strong for equipment from heavy-duty valve and pump makers like Flowserve.

Flowserve is broadly diversified over five distinct industries. It is well positioned in emerging markets; in 2011, 52% of capital spending was targeted to emerging markets.

Financially, Flowserve expects revenue growth of 8% to 10% from 2011 to 2016. The company reaffirmed its EPS for 2012 from $8 to $8.80 a share, up from its 2011 estimate of $7.45 to $7.85.

The total five-year shareholder return is 128%, compared to industry peer average of 26%. And dividends have grown 21% per year from 2007 to 2011.

Since the beginning of the year, FLS has outpaced the oil services sub-sector, the broader energy sector, and recently, the S&P 500.

Since mid-July, FLS has traded higher above its 50-day and 200-day moving averages. Immediate support is at $119.10 with longer-term support at its July 11 low of $109.05.

I like Flowserve's long-term growth prospects. The company is well-diversified across business sectors and geographically, it's not dependent on just the oil and gas sector, and it has a solid footprint in rapidly growing emerging markets.

Its focus on shareholder returns with robust stock buybacks and dividends provides a solid support to downside risk. The stock has performed exceptionally well and it near its 52-week high. Buy on pullbacks for the long-term.

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