Transformation is painful but good in the long term: 7 auto stocks with an upside potential of up to 35%

Any sector going through a transformation will witness disruption, leading to a divergence in the performance of stocks. Also, the sector will see phases of underperformance on the street. All that should, however, be secondary if the answer to a key question is ‘yes’. And that question is: Will the transformation lead to an increase in the overall market size? If all the pain is going to lead to an increase in market size, then any correction is a good opportunity. So, time to relook at the auto sector currently pivoting to electric vehicles.