Penny stocks are shares that usually trade at $5 or less. These stocks are mostly of small companies that usually trade over-the-counter (OTC).

Some penny stocks, however, do trade on primary exchanges. These stocks are a popular way to earn quick and big returns, but it is not without risks as these stocks are extremely volatile.

Liquidity is also a concern with these stocks. To give you an idea of the money you could make or lose with penny stocks, detailed below are the five best and worst performing penny stocks of 2022.

Five Best-Performing Penny Stocks Of 2022

We have used the year-to-date return and stock price data (as of Sept. 1, 2022) of stocks trading below $5 to rank the five best and worst performing penny stocks of 2022.

5. Mammoth Energy Services (126%)

Founded in 2016 and headquartered in Oklahoma City, this company explores and develops North American onshore unconventional oil and natural gas reserves.

Mammoth Energy Services Inc (NASDAQ:TUSK) shares are up by over 13% in the last year and up almost 87% in the last three months.

As of this writing, Mammoth Energy Services shares are trading at above $4 (52-week range of $1.3500 to $5.2949), giving it a market capitalization of more than $190 million.

4. Alaunos Therapeutics (176%)

Founded in 2003 and headquartered in Houston, it is a biopharmaceutical and clinical-stage oncology-focused cell therapy company.

Alaunos Therapeutics Inc (NASDAQ:TCRT) shares are up by over 70% in the last year and up over 500% in the last three months.

As of this writing, Alaunos Therapeutics shares are trading at above $2.90 (52-week range of $0.4053 to $3.0600), giving it a market capitalization of more than $530 million.

3. Houston American Energy (185%)

Founded in 2001 and headquartered in Houston, this company develops, explores, acquires and produces natural gas and crude oil properties.

Houston American Energy Corporation (NYSEAMERICAN:HUSA) shares are up by over 113% in the last year but are down by over 8% in the last three months.

As of this writing, Houston American Energy shares are trading at above $4.10 (52-week range of $1.07 to $16.61), giving it a market capitalization of more than $40 million.

2. Nine Energy Service (205%)

Founded in 2011 and headquartered in Houston, this company offers oil-field services, including on-shore completion and production service.

Nine Energy Service Inc (NYSE:NINE) shares are up by over 38% in the last year but are down by over 9% in the last three months.

As of this writing, Nine Energy Service shares are trading at above $3.30 (52-week range of $0.7940 to $8.1000), giving it a market capitalization of more than $110 million.

1. Trevi Therapeutics (301%)

Founded in 2011 and headquartered in New Haven, Conn., it is a clinical-stage biopharmaceutical company that develops and markets Haduvio to treat serious neurologically mediated conditions.

Trevi Therapeutics Inc (NASDAQ:TRVI) shares are up by almost 86% in the last year and up over 25% in the last three months.

As of this writing, Trevi Therapeutics shares are trading at above $3.20 (52-week range of $0.4600 to $4.6834), giving it a market capitalization of more than $130 million.

Five Worst-Performing Penny Stocks Of 2022

5. Baudax Bio (-96%)

Founded in 2015 and headquartered in Malvern, Pa., this company develops and sells products for acute care settings.

Baudax Bio Inc (NASDAQ:BXRX) shares are down by almost 99% in the last year and down over 56% in the last three months.

As of this writing, Baudax Bio shares are trading at above $0.33 (52-week range of $0.3075 to $25.3050), giving it a market capitalization of more than $2.70 million.

4. Revelation Biosciences (-96%)

Founded in 2019 and headquartered in San Diego, this company develops immunologic-based therapies for the prevention and treatment of disease.

Revelation Biosciences Inc (NASDAQ:REVB) shares are down by over 96% in the last year and down over 19% in the last three months.

As of this writing, Revelation Biosciences shares are trading at above $0.39 (52-week range of $0.3801 to $11.2900), giving it a market capitalization of more than $5 million.

3. Quanergy Systems (-97%)

Founded in 2012 and headquartered in Sunnyvale, Calif., this company develops smart LiDAR hardware and software sensor security solutions for use in automotive and IoT.

Quanergy Systems Inc (NYSE:QNGY) shares are down by over 97% in the last year and down almost 48% in the last three months.

As of this writing, Quanergy Systems shares are trading at above $0.284 (52-week range of $0.27 to $10.10), giving it a market capitalization of more than $35 million.

2. Clarus Therapeutics Holdings (-98%)

Founded in 2004 and headquartered in Northbrook, Ill., this pharma company develops androgen and metabolic therapies for men and women.

Clarus Therapeutics Holdings Inc (OTCMKTS:CRXT) shares are down by over 99% in the last year and down almost 90% in the last three months.

As of this writing, Clarus Therapeutics Holdings shares are trading at $0.05 (52-week range of $0.05 to $10.57), giving it a market capitalization of more than $3.5 million.

1. Agile Therapeutics (-98%)

Founded in 1997 and headquartered in Princeton, N.J., it is a healthcare company that develops and commercializes transdermal patches.

Agile Therapeutics Inc (NASDAQ:AGRX) shares are down by over 99% in the last year and down almost 72% in the last three months.

As of this writing, Agile Therapeutics shares are trading at above $0.38 (52-week range of $0.37 to $50.40), giving it a market capitalization of more than $15 million.

This article originally appeared on ValueWalk

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