Josh Kohn-Lindquist, The Motley Fool

Sun, Jun 15, 2025, 6:30 AM6 min read

• Despite all of the recent mayhem, the market has nearly returned to all-time highs.

• Even with this run-up in price, some of my favorite S&P 500 stocks didn't go along for the ride.

• Now looks like the perfect time to consider these top-tier compounders -- all down from their highs.

• 10 stocks we like better than Copart ›

And just like that, the S&P 500 index is nearing all-time highs again.

As unlikely as this may have seemed two months ago, the stock market dismissed numerous fears and pushed many growth stocks to new highs. However, not all S&P 500 stocks took part in this recovery. This notion is particularly true for many "steady Eddie" compounders in the index.

Today, we'll look at three of these magnificent compounders down between 16% and 21% and discuss why each looks like an excellent buy over the long term.

Copart (NASDAQ: CPRT) owns roughly 250 salvage yards across North America and processes the sale of over 3 million (mostly) totaled vehicles on its online auction platform. The company generates 81% of its sales from car insurers, who use Copart's platform to sell totaled vehicles to dismantlers, exporters, car repair shops, dealerships, or the general public.

The Texas-based company holds nearly half of the market share in this salvage vehicle niche and operates in a duopoly alongside RB Global. However, whereas RB Global leases the land for most of its salvage yards, Copart owns almost all of its property, giving the latter a significant advantage in profitability.

Furthermore, the company benefits from NIMBY (not in my backyard) feelings from citizens who don't want to see more junkyards in their towns. This sentiment, combined with Copart's nationwide network of locations and top-tier profitability, provides the company with a wide moat. As result, Copart has been a 330-bagger since its initial public offering in 1994.

With this success, though, comes a lofty valuation. And in the company's last quarter, Copart slightly missed analysts' expectations, prompting a 21% sell-off. Following this decline, however, the company trades at a more reasonable 27 times cash from operations -- a mark it hadn't seen in over two years.

Ultimately, Copart is well-positioned to thrive over the long term, in my opinion. As cars become increasingly complex and more technologically advanced, their repair costs will also continue to rise. With insurers more likely to deem a car "totaled" after an accident -- rather than face these ballooning repair costs -- Copart stands to benefit, just as it has for over three decades.