For long-term investors, transformation is a process – not an event: 5 stocks from energy space with an upside potential of up to 48%

The shift to EVs has opened up opportunities in the auto sector. But questions are being raised about the fate of companies in the oil and gas sector. Will they face an existential threat? Some of these are transforming into energy companies – expanding beyond oil and gas. Energy as a business requires huge capital. It also requires great patience to not only make the business profitable, but also to turn the stocks into sustainable wealth creators. As a business that is dependent on global developments, it is not easy for these companies to keep pace with change – bringing in an element of higher risk. The good news is that, while as a sector it is a slow starter, once change happens, it sustains for long. There will thus be phases when the stocks will seem to be underperforming. But in the long term, the power of the balance sheet will prevail.