Investors hoping to get more bang for the buck often find themselves exploring small-cap stocks. Companies with market caps below $2 billion have a lot of upside if things go right, but the risks are also substantially higher with price tags this low.

Groupon (NASDAQ:GRPN), Tanger Factory Outlet Centers (NYSE:SKT), and Glu Mobile (NASDAQ:GLUU) are three small-cap stocks to consider adding to your portfolio this month. Let's dive into why they are stocks to buy in July.

A woman celebrating as a stock chart on the wall behind her moves higher.

Image source: Getty Images.

Groupon

It seems a lifetime ago when Groupon was cool and booming. Offering discounted prepaid vouchers to local restaurants, shops, services, and other experiences was all the rave. Lead-hungry proprietors warmed up to Groupon even if meant selling a dollar for 50 cents and settling for a quarter. 

Time hasn't been kind to Groupon, and last month it succumbed to a 1-for-20 reverse stock split last week just to remain in exchange compliance. Groupon's business was already slumping before the pandemic. Revenue had declined in each of the three previous years, so it's not as if the 35% plunge it posted in the first quarter of this year was a jarring event. Businesses were closing down in the final few weeks of the period, and the last thing on their mind was finding new leads. 

Needs will change at the other end of this pandemic. Groupon will be with fewer employees and even a different CEO at the other end of the COVID-19 crisis, but the recession should find folks scurrying back to Groupon for local deals -- and merchants will be even hungrier than before to offer them. 

Tanger Factory Outlet Centers

Another out-of-favor stock that should be an early leader in the eventual pandemic recovery process is Tanger. The factory outlet center operator attracts more than 181 million annual visitors to its three dozen-plus locations, but that won't be the case this year, as its upscale outlets closed down in mid-March.

Life is starting to return to some degree of normality. Most of its outlet centers are open, and the good news is that traffic is at 90% of where it was a year earlier for stores that have been open for at least a month. Consumers still crave the creature comfort of in-person shopping at brand-name outlet stores. Tanger is also understandably a more attractive destination for shoppers in a recession. 

Tanger suspended its hefty distributions when its near-term outlook was bleak. The quarterly payouts should return shortly now that Tanger is back in business, and probably already profitable again.  

Glu Mobile

Let's close with a stock I identified two months ago as a top small-cap stock to buy in May. It was a smart call, with the mobile gaming publisher rising 28% that month.

Things are going well for the company behind free-to-play games that include Design HomeCovet Fashion, and Tap Sports Baseball. It posted blowout financial results in May, lifting its bookings guidance for the second quarter that just ended as well as all of 2020. 

Sticky casual games have proven their worth during the shelter-in-place phase of the COVID-19 situation, as folks are hungry for entertainment while they spend more time at home. Groupon, Tanger Factory Outlet Centers, and Glu Mobile are top small-cap stocks to buy this month.