These 4 ASX shares could rocket this month: Here's why

Fund managers will be buying up the stocks for these rapidly growing businesses, thereby pushing up the share price.

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Investors are advised to watch four ASX shares this month as they will receive a huge boost in their fortunes.

After close of trade on Friday, S&P Dow Jones announced the latest adjustment to the S&P/ASX 200 Index (ASX: XJO) constituency.

And for four lucky stocks, they are about to hit the big time on 20 March as they enter the exclusive ASX 200 club.

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Image source: Getty Images

Welcome to the ASX 200

The ASX shares to be added to the index this month are:

Those businesses are obviously growing at a sufficient pace to overtake other companies in entering the ASX 200.

But the mere announcement that they will enter the index will in itself be a boost to the share price.

That's because all those funds — both unlisted and ETFs — that track the ASX 200 will be forced to buy those shares on 20 March.

That will drive up demand for the stocks, thereby pushing up the prices.

What have these companies been doing?

Life360 makes personal security software for families. The stock could do with a boost from the index inclusion, as it has dropped 1.64% since the start of the year.

The market has, though, already given plenty of recognition for the US tech company's growth over the past half year or so. 

The Life360 share price has almost doubled since 23 June.

The Motley Fool's James Mickelboro reported last week that Goldman Sachs rates Life360 shares as a buy.

"Life360 is exposed to a US$12 billion global TAM [total addressable market] with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US."

Meantime, NRW Holdings is a mining and construction services provider from Western Australia.

Despite growth in revenue for the December quarter and the positive prospect of a ramp-up in China's post-COVID economy, the stock is down 3.58% year to date.

Polynovo is a developer of medical technology.

Its share price has risen a whopping 16.2% year to date, in recognition of a bumper December quarter that saw a 62% increase in revenue year-on-year.

Finally, Syrah Resources produces graphite, which is a key ingredient for lithium-ion batteries.

It boasts prominent clients such as Tesla Inc (NASDAQ: TSLA) and LG Electronics Inc (KRX: 066570).

Motley Fool contributor Tony Yoo has positions in Life360 and Nrw. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, PolyNovo, and Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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