A Once-in-a-Decade Opportunity: 3 Magnificent S&P 500 Stocks Down 29% to 42% Buy Right Now

I've noticed that as the market turns its attention to stocks tied to artificial intelligence (AI), semiconductors, data centers, quantum computing, and space, many magnificent S&P 500 stocks have been cast aside. While there is certainly immense potential in these booming industries, I believe this outsize attention has left opportunities in the more "boring is beautiful" sectors, like industrials.

Today, I will look at three forgotten industrial stocks that not only lead their niches, but also trade at once-in-a-decade valuations, making them intriguing buy-now candidates.

1. Copart: 42% below 52-week high

Copart (NASDAQ: CPRT) is the leading online auction platform for totaled vehicles and owns 250 salvage yards across North America and 11 countries in total. The typical transaction involves auto insurers selling (usually) totaled vehicles at auction to dismantlers, exporters, recyclers, and many other customers -- including the public.

It may sound like a fairly unassuming business, but Copart stock has been a 185-bagger since 1994, highlighting the durability of its operations.

The company's salvage yards benefit from "not-in-my-backyard" sentiment, meaning that communities generally put up a lot of resistance toward welcoming a new junkyard in town. This NIMBY-ism helps lock in Copart's status as the industry leader and provides Copart with a wide moat.

However, the company has struggled to lap catastrophe-aided, strong sales years in 2024 and 2025 , and Copart stock has been hammered. As two years of unusually strong hurricanes hit the U.S., Copart benefited from an outsize number of cars being totaled in the storms, but this set a higher than realistic benchmark for the stock to lap sales-wise.

Further aiding this drop was a recent leadership change that saw Jay Adair return to the CEO role, which was a move that caught the market by surprise.

Over time, this leadership change and short-term slowdown should normalize, and the long-term drivers of Copart's business will propel the stock to an eventual rebound. The stronger driver working in the company's favor is soaring total-loss rates from insurers, stemming from the increasingly complex technology being used in cars, which makes them more expensive to repair.

While the company faces the threat of an "existential crisis" from reduced crashes from autonomous vehicles (AVs), I think this threat is overdone at today's valuation. Even if car crashes were greatly reduced, Copart would likely play a large role in AVs' end-of-life process and the parts recycling that would follow. Not even AVs run forever.

Currently trading at 21 times free cash flow (FCF) -- its lowest mark since 2017 -- Copart looks like a great long-term, buy-and-hold investment to consider right now.

Image source: The Motley Fool.

2. Rollins: 35% below 52-week high

Rollins (NYSE: ROL) is North America's leading pest control services business and is a 106-bagger since 1990. Thanks to its non-discretionary offerings, industry-leading scale, robust pricing power, and successful track record as a serial acquirer in a highly fragmented niche, Rollins has long commanded a premium valuation alongside its market-smashing returns.

However, following a Federal Trade Commission ruling, Rollins won't be allowed to impose non-compete agreements on its technicians, which the FTC argued "locked" the employees in place. The market has apparently viewed the update as bad news for Rollins, which has dropped 35% over the past year, thanks in part to this ruling.

Now, maybe I'm overly optimistic, but I don't believe this is a death knell for the company by any means. Now, Rollins has the opportunity to build its relationship with its technicians from the ground up. Yes, there will be some short-term departures that weigh on the company, but Rollins' immense scale should help it weather the storm until everything normalizes.

Furthermore, the company benefits from virtually inelastic pricing power thanks to its essential offerings. Restaurants simply can't have any infestations. Homeowners must deal with termites. The list goes on. Similarly, whether it costs $500 or $550 for a theoretical pest problem, customers aren't likely to balk at the price, as long as it isn't completely outrageous. Whatever concessions Rollins has to make with its technicians, it should eventually be able to recoup them through its pricing power.

Currently trading at 33 times FCF, Rollins is the cheapest it has been since 2015, and looks like an excellent contrarian investment in my opinion, as it rebounds from the impacts of the FTC's recent ruling over the longer haul.

3. Otis: 29% below 52-week high

Otis Worldwide (NYSE: OTIS) is the largest elevator manufacturer, installer, and repair and maintenance company in the world. Even after the company's 29% decline over the last year, Otis has delivered annualized total returns of 9% since its market debut in 2020.

At the moment, Otis is battling through a slowdown in elevator installations in China and temporary issues weighing on its all-important service and maintenance margins, which prompted its recent decline. That said, management believes margins should return to their previous levels by the end of the year, so the ongoing sell-off may be overdone.

Furthermore, while more elevator installations are almost always a good thing for Otis, they aren't really the company's bread and butter. The company's service segment accounts for two-thirds of Otis' sales and 94% of its operating profits and isn't likely to be disrupted, as elevators require recurring, mandatory maintenance and repairs. Since elevator servicing is required by law, Otis is well positioned to deliver utility-like returns for decades to come, while also offering upside from modernizing outdated equipment.

Trading at 19 times earnings and 17 times FCF -- the company's lowest mark since it debuted in 2020 -- Otis is very reasonably priced considering that its sales should continue to steadily outpace inflation over the long haul. While it may not be a multibagger anytime soon, Otis offers a well-funded 2.4% dividend yield and makes for an excellent buy-and-hold stock for decades of investment.

Josh Kohn-Lindquist has positions in Copart and Rollins. The Motley Fool has positions in and recommends Copart and Rollins. The Motley Fool recommends Otis Worldwide. The Motley Fool has a disclosure policy.