U.S. Capital Goods Low Leverage High Rewards

Omega Flex

Market Cap: US$308.6m

Manufactures and sells flexible metal hoses, fittings, and accessories in the United States, Canada, and internationally.

Oshkosh

Market Cap: US$5.7b

Provides purpose-built vehicles and equipment worldwide.

Snap-on

Market Cap: US$16.2b

Manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide.

Emerson Electric

Market Cap: US$59.3b

A technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe.

A. O. Smith

Market Cap: US$9.5b

Manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India.

MSC Industrial Direct

Market Cap: US$4.3b

Engages in the distribution of metalworking and maintenance, repair, and operations (MRO) products and services in the United States, Canada, Mexico, the United Kingdom, and internationally.

General Dynamics

Market Cap: US$72.9b

Operates as an aerospace and defense company worldwide.

Burnham Holdings

Market Cap: US$82.3m

Designs, manufactures, and sells boilers and related heating, ventilation, and air conditioning products and accessories for residential, commercial, and industrial applications in the United States, Canada, and Mexico.

Kennametal

Market Cap: US$1.5b

Engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide.

Insteel Industries

Market Cap: US$643.5m

Manufactures and markets steel wire reinforcing products for concrete construction applications.

Watsco

Market Cap: US$17.5b

Engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean.

Fastenal

Market Cap: US$46.4b

Engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, and internationally.

Eastern

Market Cap: US$128.2m

Designs, manufactures, and sells engineered solutions to industrial markets in the United States and internationally.