Compton grew up racing in Virginia with a focus on late models in local divisions. He competed in the NASCAR Winston Racing Series and won 36 races over seven years of late model competition. During this period he also hosted a television program covering Virginia-area racing. His success on the short tracks led to opportunities in NASCAR's national touring series.
Compton made his debut in a major NASCAR series in 1996, qualifying ninth for the Goody's Headache Powder 500 at Martinsville Speedway in the Winston Cup before retiring with brake failure. He focused on the Craftsman Truck Series from 1997 onward, joining Impact Motorsports in the No. 86 Ford. After three top-five finishes in his first truck season, Compton found his stride in 1998: he won his first career pole at Phoenix International Raceway, then followed it with his first victory the next week at Portland Speedway, where he led all but two laps. He added a second win at Heartland Park Topeka that year, was named Most Popular Driver, and finished seventh in points. In 1999, with Impact switching to Dodge Rams, Compton finished fourth in the truck standings despite not winning.
In 2000, Compton moved to the Winston Cup Series with Melling Racing, driving the No. 9 Ford Taurus. His best result was a 16th-place finish at New Hampshire, and he ended the year 38th in points. For 2001, Melling renumbered the car to 92 and switched to Dodge, with Chad Knaus joining as crew chief. Compton qualified on the outside pole next to Bill Elliott for the Daytona 500 and finished tenth. At Talladega he won his first career Cup pole position — and later a second Cup pole at Talladega — though mechanical failures prevented strong race finishes. Sponsorship problems at Melling forced him to find a new home for 2002.
Compton drove the No. 14 Pontiac for A.J. Foyt Racing in 2002, replacing Ron Hornaday Jr. His best finish was 18th before sponsor Conseco filed for Chapter 11 bankruptcy and the team's plans unraveled; Compton was released after the New England 300. He made brief additional Cup appearances for Melling and BAM Racing to close the season, and his last full Cup start came in the 2003 Pepsi 400 for Morgan-McClure Motorsports.
Compton ran four consecutive full Busch Series seasons with JTG Daugherty Racing beginning in 2001, accumulating 33 career top-ten finishes and one pole, with a best points finish of ninth in 2002. Following the conclusion of the 2006 season he returned to the Truck Series. In 2006 he founded Turn One Racing, LLC, a venture aimed at promoting young drivers in the southeastern United States. He purchased a stake in Bobby Hamilton Racing in 2008 and drove their No. 4 Dodge before the team folded after Bristol that year. Through 2009 and 2010 he drove a truck for Wyler Racing, then assumed sole ownership of that operation and renamed it Turn One Racing. In 2012 Compton expanded Turn One Racing into the Cup Series with a limited schedule.
Stacy Compton's career traces the trajectory of a respected short-track specialist who made a credible transition to NASCAR's national stage. His Truck Series victories and his strong Busch Series tenure — combined with the distinction of starting on the front row of the 2001 Daytona 500 — established him as a consistent midfield competitor across three decades. He subsequently worked as a NASCAR analyst for ESPN.