Australian stocks have managed to buck declines striking much of the region, touching over five-year highs, but the gains could be getting lopsided.
The top-10 industrial stocks are now trading at their most expensive levels since the dot-com boom period, Goldman Sachs said in a note, adding they have typically traded at around 22 times forward earnings on average, compared with their current 28 times.
(Read more: Australia business investment skids, outlook darkens)
The top-10 names, which include consumer names such as Domino's Pizza, Ramsay Health Care and Carsales.com as well as building materials play James Hardie, returned an average of 18 percent over February, Goldman noted.
Their premium to the broader market also expanded from an average of around 50 percent to 80 percent currently, it noted.
"The most striking feature of the reporting season has been the strong multiple expansion witnessed across 'high quality' names," Goldman said, noting revenues have actually disappointed compared with consensus expectations.