However, analysts are cautioning that those growth expectations by shareholders will soon turn to expectations of profits and dividends.
Software provider Xero, which has yet to post an after-tax profit, has booked an unprecedented 241% rise in its share price during the past year rolling, giving it a market capitalisation of $1.7 billion, on shares trading around $15.
Craigs Investment Partners broker Peter McIntyre said a combination of low interest rates, KiwiSaver funds' purchasing and positive sentiment recently from the US equities market had underpinned investor interest.
He described Xero's stellar rise as ''priced to perfection for significant growth'', but it was ''very unusual'' for a company to have attained a market cap of $1.7 billion.
Other companies which had grown to similar value, such as Air New Zealand, at $1.6 billion, Infratil at $1.3 billion, and Ports of Tauranga at $2 billion, had all delivered dividends to shareholders over a long period. ''The amount of growth factored into Diligent and Xero is very high,'' Mr McIntyre said.
Diligent's price to earnings ratio (the share price divided by earnings per share), stood at 53.6 times earnings (over 53.6 years).
''The markets are expecting that growth will continue into the future and will eventually flow into strong net profits after tax and dividends,'' he said.
With most of the seven stocks scrutinised having hit rolling year-highs in recent days, Mr McIntyre rejected the suggestion a plateau had been reached this week, saying the S&P 500 in the US was at a record high and positive US sentiment had flowed to other major markets.
