With the average stock on the S&P 500 trading at lofty levels of 42.7 times earnings (P/E), it's becoming harder and harder to find high-quality stocks trading for fair prices. One surprising area to look for them is the realm of American Depository Receipts (ADRs), or companies that do their principal business outside of the country, but trade on a U.S. exchange.

Three firms that are among the top of this category are Sify Technologies (NASDAQ:SIFY)ContextLogic (NASDAQ:WISH), and 111 Inc. (NASDAQ:YI). Let's look at why now's the time to go long on the India data center company, the discount e-commerce firm in Europe, and the leading telepharmacy giant in China. 

People meeting in boardroom with virtual participant on screen

Image source: Getty Images.

1. Sify Technologies 

Sify Technologies holds a leading position in the Indian telecom sector, but is rapidly transitioning out of the industry due to fierce competition and razor-thin margins. It has found a perhaps more lucrative role in powering the country's emerging IT infrastructure. The company has 10 data centers servicing 10,000 enterprise clients across India. It plans to more than double that number within the next four years.

Sify's data center segment has witnessed 21% year over year. The firm's customers range from automakers, pharma companies, to power plants and payment solution providers. In third-quarter 2021 (ended Dec. 31), its sales and earnings improved by 7% and 54% over Q3 2020, respectively, to INR 6.301 billion (Rupees) and INR 252 million. Over the past five years, the company saw steady revenue and earnings growth of 8% and 10% per year.

Investors should see those numbers shoot higher after the company's software and data system segment takes over that of its legacy telecom operations. For now, the company remains a bargain tech stock trading at just 1.7 times sales and about 49 times earnings.

2. ContextLogic (Wish)

ContextLogic is the brains behind the e-commerce platform, Wish. Unlike its competitors Amazon (NASDAQ:AMZN) and Shopify (NYSE:SHOP), the only thing this company cares about when it comes to its customers is pricing. Wish sells its discount and unbranded merchandise directly from manufacturers in China, saving the costs of branding, marketing, and support that are passed on to consumers.

It undoubtedly has a business model that prioritizes cheapness above all else (even the shopping experience) -- but it's a surprisingly popular one. Believe it or not, Wish is the No. 1 shopping app in over 42 countries. It has over 107 million monthly active users.

Last year, the company's revenue grew by 34% year over year to $2.5 billion, including a 193% increase in logistics revenue. What's more, the number of partner merchants on its platform grew by a stunning 435% to 550,000.

Wish operates in over 100 countries, but is especially popular in Europe; 46% of its sales come from the continent. Last year, the company completed a $1.1 billion IPO to scale its operations. For now, Wish has found itself doing quite well in a niche market. I think the stock is a buy, especially while it trades at just above 3 times revenue.

3. 111 Inc.

Don't let the nondescript name throw you off. 111 is currently the No. 1 telepharmacy company in China and is looking to disrupt the CNY 300 billion (Yuan) retail pharmacy industry in the country. It partners with 57% of retail pharmacies, or 300,000 stores, across the country to deliver its medications and health products. 111 offers branded medications, generic drugs, vitamins, contact lenses, beauty products, and more.

111 is also expanding into telemedicine to create a one-stop platform for all healthcare needs. After consultation with a physician on a partner service, patients can have their prescription delivered to their doorstep. Recently, it began to offer liver and gallbladder drugs on its platform as part of a broader move into helping people manage chronic diseases.

Last year, the company's sales grew by 107.6% over 2019 to $1.26 billion. Simultaneously, its net loss went from 11% of revenue to 4.6%. Sales of one-time coronavirus pandemic supplies (like masks) helped fuel its growth for much of the year. However, the company still expects to increase its sales by 63% year over year in 2021. With its stock trading at just 0.8 times revenue, this is one of the cheapest healthcare growth stocks investors can buy right now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.