NEW YORK ( TheStreet) -- American Tower ( AMT), Crown Castle International ( CCI) and Virgin Media ( VMED) are among telecom stocks that received buy ratings of 60%-89%.

Although IDT Corp ( IDT), USA Mobility ( USMO), Towerstream ( TWER), ORBCOMM ( ORBC), Otelco ( OTT), Iridium Communications ( IRDM) and 8x8 ( EGHT) have buy ratings of 67%-100%, we did not include these stocks in this list, as only a few analysts track these stocks.

The NASDAQ Telecom Index surged 9.3% so far in 2011 to 52-week highs on Tuesday, while the S&P 500 Index rose 5.3%.

Besides top ratings, these 10 telecom stocks are expected to gain up to 26% over the next 12 months, based on analysts' consensus estimates of price targets.

10. China's KongZhong ( KONG) is a mobile Internet company delivering value-added services through multiple technology platforms.

For 2010 third quarter, revenue increased 7% year-over-year to $37.7 million, above the company's guidance range of $35 million-$36 million. Similarly, gross profit of $15.6 million for the quarter surpassed the guidance of $14.5 million-$15.5 million. Commenting on the results, the KongZhong's chairman and CEO, Leilei Wang said in a press release, "Against a more stable Wireless value-added services (WVAS) environment, KongZhong continued to make long-term investments to become a diversified digital entertainment player in the mainland China market. In 3Q, we streamlined our Wireless internet service (WIS) and WVAS business to more efficiently address the coming consolidation we foresee in the China WVAS market, we continued to lead the mobile game market and we made significant progress in our Internet game strategy to develop a robust and differentiated online game pipeline for 2011."

For 2010 fourth quarter, the company guides revenue and gross profit within the ranges of $35.5 million-$36.5 million and $15.5 million-$16.5 million, respectively.

Of the five analysts covering the stock, three recommend buying and two rate holding, representing 60% buy ratings. In comparison, China Mobile ( CHL), Indosat Tbk PT ( IIT), China Unicom ( CHU) and SK Telecom ( SKM) have buy ratings of 20%, 0%, 0% and 33%, respectively.

The average price target of analysts surveyed by Bloomberg is $7.8, 11% higher than the stock's current level.

9. NETLOS Holdings ( NTLS) provides wireless and wire line communications to enterprise and residential consumers, primarily in Virginia and West Virginia.

Analysts polled by Bloomberg expect the company to report earnings of 27 cents per share for 2010 fourth quarter, up from 26 cents in the quarter-ago period. Analysts foresee NETLOS reporting earnings per share of $1.13 for 2010, $1.42 for 2011 and $1.61 for 2012.

The stock's return-on-equity months was 37.1% during the past 12 months, whereas, AT&T ( T), Verizon Communications ( VZ), Sprint Nextel ( S), and Clearwire ( CLWR) recorded ROEs of 18.5%, 6.3%, -12.8% and -17.8%, respectively.

Of the 10 analysts covering the stock, 6 recommend buying and 4 rate holding, representing 60% buy ratings. On average, analysts polled by Bloomberg expect NETLOS grow 12% over the next 12 months.

8. Atlantic Tele-Network ( ATNI) is a telecommunications services provider catering to rural, niche and other under-served markets and geographies in the U.S., Bermuda and the Caribbean.

The company is expected to report earnings of 30 cents per share for 2010 fourth quarter, compared to 33 cents per share in the year-ago period, according to analysts polled by Bloomberg. Earnings per share for 2010 are pegged at $2.57 for 2010, $3.58 for 2011 and $4.91 for 2011, up from $2.32 reported for 2009.

The stock received 60% buy ratings, or from three of the five analysts covering the stock. The remaining two analysts rated holding. Other stocks such as Qwest Communications International ( Q), Cincinnati Bell ( CBB) and PAETEC Holding ( PAET) have buy ratings of 37%, 29% and 50%, respectively.

Atlantic Tele-Network has a 26% upside over the next 12 months with a consensus target price of $49.5, based on analysts polled by Bloomberg.

7. Crown Castle International ( CCI) owns, operates and leases wireless infrastructure.

For 2010 fourth quarter, the company reported earnings of 12 cents per share, compared to earnings of 4 cents per share and loss of 49 cents per share in the year-ago and quarter-ago periods, respectively. Crown Castle is seen reporting earnings per share of 47 cents for 2011 and 83 cents for 2012, a turnaround from $1.16 per share loss reported for 2010, report analysts surveyed by Bloomberg.

The stock received 73% buy ratings, or 16 of the 22 analysts covering the stock recommend buying, while 5 rate holding and 1 suggests selling. Other stocks such as Syniverse Holdings ( SVR), Neustar ( NSR) and TNS ( TNS) have buy ratings of 17%, 31%, and 50%, respectively.

Over the past one year, Crown Castle gained around 25.7% and is likely to rise an average 12% over the next 12 months, as per analysts polled by Bloomberg.

6. Virgin Media ( VMED) provides entertainment and communications services in the U.K.

Analysts polled by Bloomberg expect the company to report 14 cents loss per share for 2010 fourth quarter, compared to 29 cents per share reported in the year-ago period. For full year, analysts foresee the company reporting loss per share of 71 cents for 2010, in comparison to $1.02 loss per share reported for 2009. Heading into 2011, earnings per share are seen at 35 cents and at $1.29 for 2012.

Over the past one year, the stock surged around 74.8%, while Comcast ( CMCSA), Time Warner ( TWX) and Scripps Networks Interactive ( SNI) reported gains of 54%, 33% and 68%, respectively.

Of the 22 analysts covering Virgin Media, 16 recommend buying, 4 rate holding and 2 suggest selling. The stock's average price target, based on analysts surveyed by Bloomberg, is $31.3, up 23% from current level.

5. SBA Communications ( SBAC) owns and operates wireless communications infrastructure.

For 2010 fourth quarter, the company is expected to report loss of 21 cents per share, compared to per share loss of 37 cents and 30 cents in the year-ago and quarter-ago periods, respectively, based on analysts' polled by Bloomberg.

The stock surged around 31.6% during the past one year, while FiberTower ( FTWR), Leap Wireless International ( LEAP) and Clearwire ( CLWR) returned around -5%, -2.5%, and -11.7%, respectively.

Of the 19 analysts covering SBA Communications, 14 recommend buying, 4 rate holding and 1 suggests selling. The stock's average price target is $45.1, 4% above current level, based on Bloomberg survey.

4. inContact ( SAAS) develops and markets software for call centers.

The company is likely to report 2 cents loss per share for 2010 fourth quarter, as opposed to 4 cents loss in the quarter-ago period, according to analysts polled by Bloomberg .

inContact received 75% buy ratings, or from three of the four analysts tracking the stock. In comparison, Soundbite Communications ( SDBT), PROS Holdings ( PRO), and Salesforce.com ( CRM) secured buy ratings of 50%, 43%, and 65%, respectively.

On average, inContact gained around 16.6% over the past one year, while analysts polled by Bloomberg expect the stock to gain 9% over the next 12 months.

3. American Tower ( AMT), a holding company, owns, operates, and develops wireless communications and broadcast towers.

Analysts polled by Bloomberg expect the company to report earnings of 22 cents per share for 2010 fourth quarter, compared to earnings of 16 cents per share in the year-ago period. Analysts foresee the company reporting earnings per share of 94 cents for 2010, $1.09 for 2011 and $1.44 for 2012, up from earnings of 59 cents per share reported for 2009.

The stock surged around 31% during the past year, whereas WPCS International ( WPCS) and Crown Castle International returned around -8% and 26%, respectively.

Of the 23 analysts covering American Tower, 18 recommend buying, 4 suggest holding and 1 rates selling. The stock's average price target is $59.3, 9% above current level, based on analysts surveyed by Bloomberg.

2. NII Holdings ( NIHD) provides wireless communication services under the Nextel brand in Latin America.

NII Holdings is likely to report earnings of 53 cents per share for 2010 fourth quarter, as per analysts polled by Bloomberg, up from earnings of 35 cents per share in the year-ago period. The company is likely to report earnings per share of $2.07 cents for 2010, $2.48 for 2011 and $2.78 for 2012, report analysts.

The stock has a 24% upside over the next 12 months with a consensus target price of $52.1, according to analysts polled by Bloomberg, whereas Telefonica ( TEF), America Movil SAB ( AMX), Telefonos de Mexico SAB ( TMX), Vivo Participacoes ( VIV), and Millicom International Cellular ( MICC) have upsides of 16%, 24%, 25% and 2%, respectively.

Of the 20 analysts covering NII Holdings, 17 recommend buying, 2 suggest holding and 1 rates selling. The stock gained around 24.3% over the past one year.

1. AboveNet ( ABVT) provides high-bandwidth connectivity solutions for businesses and carriers.

Analysts polled by Bloomberg expect the company to report earnings of 61 cents per share for 2010 fourth quarter, compared to earnings of 66 cents per share in the quarter-ago period. Analysts foresee the company reporting earnings per share of $2.40 for 2010, $2.74 for 2011, and $2.92 for 2012.

The stock's return-on-equity during the past 12 months was 64.1%. In comparison, Equinix ( EQIX), tw Telecom ( TWTC), Level 3 Communications ( LVLT), and EarthLink ( ELNK) had ROEs of 6.6%, 31.6%, -81.7%, and 47.0%, respectively.

Of the 9 analysts covering the stock, 8 recommend buying and 1 suggests holding. The stock's average price target is $69.3, 11% above current level, based on analysts surveyed by Bloomberg.
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