U.S. Capital Goods Low Leverage High Rewards

Snap-on

Market Cap: US$18.8b

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

A. O. Smith

Market Cap: US$7.9b

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.

Global Industrial

Market Cap: US$1.1b

Through its subsidiaries, operates as an industrial distributor of various industrial and maintenance, repair, and operation (MRO) products in the United States and Canada.

Apogee Enterprises

Market Cap: US$749.1m

Engages in the provision of architectural products and services for enclosing buildings, and glass and acrylic products used for preservation, protection, and enhanced viewing in the United States, Canada, and Brazil.

Omega Flex

Market Cap: US$289.6m

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

Watsco

Market Cap: US$15.5b

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$50.0b

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

Kennametal

Market Cap: US$2.7b

Engages in development and application of tungsten carbides, ceramics, and hard materials and solutions worldwide.

Eastern

Market Cap: US$125.4m

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