NEW YORK ( TheStreet) -- YPF ( YPF), Telecom Argentina ( TEO), Banco Macro ( BMA), Grupo Financiero Galicia ( GGAL), BBVA Banco Frances ( BFR), Banco Latinoamericano de Comercio Exterior ( BLX) and Credicorp ( BAP) are stocks from the frontier markets with potential upside ranging from 10% to 90%, based on analysts' average 12-month price targets. These stocks have 55% buy ratings, as polled by Bloomberg.

We have identified these seven frontier market stocks that could deliver a median return of 48% over the next one year with estimated earnings growth rate of 16% to 20%. These stocks have outperformed the Dow index and the portfolio returned 36% during the last one year, compared to 20% by the Dow.
7. Telecom Argentina ( TEO) is one of Argentina's leading telecommunication service providers.

Results for the March 2011 quarter were impressive with net revenue up 27% to $950 million from the year-ago quarter, fuelled by its mobile and broadband businesses. During the March quarter, new mobile subscriptions grew 13% in Argentina with a 16% increase in mobile ARPU (average revenue per user), compared to the same period in 2010.

Net profit rose 53% year-over-year due to higher operating profit before depreciation and amortization (OPBDA) and lower financial charges. Net cash generation was higher -- net cash position at the end of 2011 March stood at $400 million, increasing $200 million from the same period of last year.

OPBDA margin was 32% with operating margin at 24%. The stock is expected to deliver an upside of 10% in the next one year.

6. Banco Latinoamericano de Comercio Exterior ( BLX) is a Panama-based supranational bank established by the Central Banks of Latin American and Caribbean countries to support trade finance in the region.

During the first quarter of 2011, net income was $16.3 million, a 61% increase compared to the first quarter of 2010 on improved growth in its commercial portfolio and its investment fund.

The bank's commercial portfolio grew $1.5 billion, or 47% year-over-year in the March quarter. Credit disbursements amounted to $2.3 billion in the first quarter as against $1.3 billion in the same period of the prior year.

Funding costs improved both year-over-year and sequentially as weighted average funding cost in the first quarter 2011 was 1.09%, narrowing 34 bps from the year-ago quarter, and contracting 8 bps from the fourth quarter of 2010.

The bank's March quarter efficiency ratio improved to 40% from 62% in the first quarter of 2010. The stock has analysts' buy ratings of 75% and is likely to deliver 20% in the next one year.

5. YPF ( YPF) is an Argentina-based integrated oil and gas player operating in about 70 oil and gas fields with proven reserves of 538 million barrels of oil and 2672 billion cubic feet of gas. The company also sells automotive petroleum products through 1,632 YPF-branded service stations.

Rising oil prices boosted 2010 revenue to $11.1 billion, up 23% compared to 2009. Operating income and net income surged 30% and 50% to $2.4 billion and $1.46 billion, respectively, during 2010.

The stock has gained 25% in the last one year. Analysts expect the company to post earnings growth of 10% to 12% in 2011, and the stock to deliver price appreciation of 22% over the next one year. The stock is trading at 11 times its estimated 2011 earnings and according to Bloomberg consensus, 50% of analysts maintain a buy on the stock.

4. Credicorp ( BAP) is a Peru-based leading financial services holding company. The company principally operates in the commercial banking, insurance, and investment banking segments.

Net income for the first quarter of 2011 stood at $175 million, up 35% from the same period last year. A better-than-expected retail loan pick-up and higher yields on liquid assets improved net interest income by 26% to $310 million in the March quarter. Retail loans boosted overall credit numbers, while total loans surged 23% in March quarter compared to same period last year. Net interest margin recovered marginally to 4.8% in 2011 first quarter from 4.6% in 2010 fourth quarter.

A 14% quarter-over-quarter drop in provisions declined the provision coverage to 189.5% from 198% in the fourth quarter of 2010.

Operating efficiencies improved to 40.1% as the company managed to rationalize its operating expenses. The stock is trading at 11.7 times its 2011 earnings with a potential to deliver up to 32% in the next one year.

3. Grupo Financiero Galicia ( GGAL) is an Argentina-based financial holding company. Grupo holds 94.8% stake in Banco Galicia and 87.5% in Sudamericana Holding.

Net income for the first quarter of 2011 stood at $56 million, up from $12.7 million in the same period last year.

As of March 31, 2011, the bank's market share of loans was 9.07%, rising 1.23% from the same period in 2010. For deposits, the market share was 8.44%, expanding 43 basis points from the year-ago period.

Higher profitability improved the bank's return ratios. Grupo Galicia's return on average assets for the quarter was 2.98% compared to 1.07% in the first quarter of 2010. Return on average shareholders' equity stood at 35.34% vs. 10% in the March quarter of 2010.

The stock is trading at 6.8 times its 2011 earnings and has the potential to deliver up to 79% over the next one year.

2. BBVA Banco Frances ( BFR) is an Argentina-based bank and providing personal and corporate loans and credit cards.

During the March quarter of 2011, net profit improved 22.4% year-over-year, driven by robust net interest income (NII), up 29.4% on better margins.

Credit growth rose 57% year-over-year, boosted by traction in its private sector loan portfolio. Deposits grew 30% compared to the same period last year.

Gross non-performing loan ratio declined to 0.51% with a coverage ratio of 482.6%. Analysts' consensus estimate pegs average gains at 83% over the next one year.

1. Banco Macro ( BMA) is an Argentina-based financial services company with operations in personal banking and corporate banking.

During the first quarter of 2011, Macro's net income stood at $59.5 million, up 5% year-over-year but 6% lower than the fourth quarter of 2010. Return on average assets and on shareholders' equity was healthy at 3.2% and 24.1%, respectively.

The bank's private sector credit grew 8% sequentially with consumer loans and the credit card segment faring well. Deposits were higher at 8% quarter-over-quarter in the March 2011 quarter.

Gross non-performing loan ratio improved during the quarter with a coverage ratio of 157.7%. The bank has a capitalization ratio of 24%, as of March 2011. Analysts expect the stock to deliver 90% over the next one year.

>>To see these stocks in action, visit the 7 Frontier Stocks With Upside portfolio on Stockpickr.

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