There’s the age-old adage, “You have to spend money to make money.” But then again, what if you could spend pennies and get back dollars? This is the promise of penny stocks, many of which today, trade under a dollar and have relatively small market capitalizations. Yet, not all is as easy as money in, money out. While penny stocks represent a relatively cheap way to buy a large number of shares, there’s no guarantee the value of the company will increase.

This is partly due to the esoteric nature of how stocks are valued, as they are a combination of emotions like fear and greed, while also relying on mathematical predictions for validity. Thus, penny stocks can present extreme risk when purchased in large quantities while hoping for a skyrocketing price. For those investors who can stomach the risk, here are three high-potential penny stocks to look out for this year.

Jaguar Health (JAGX)

Trading currently at 27 cents and with a market cap of $74 million, Jaguar Health (NASDAQ:JAGX) sits firmly inside the penny stock category. The company’s name gives a clue as to its mission, which is to use chemical derivatives from natural sources found in rainforests to develop novel pharmaceuticals.

These proprietary prescription medications are directed towards both people and animals with gastrointestinal issues such as an overactive bowel. Currently, one of the company’s subsidiaries, Napo Pharmaceuticals, is working to develop and commercialize a drug named crofelemer. This drug aims to treat chemotherapy-induced overactive bowel, which is a common symptom for many cancer patients.

With the drug currently in Phase 3 clinical trials, the potential for a spike in JAGX’s value is real. Though it will likely be a few more years, should the drug achieve regulatory approval, it could become a staple among chemotherapy treatments for symptom prevention. Pair this with aging populations around the developed world, and the demand for crofelemer could drive JAGX up even further.

FuelCell Energy (FCEL)

This next penny stock relies on a hydrogen technology boom in order to really achieve its full potential. Fuel Cell Energy (NASDAQ:FCEL) is a company that aims to be the first and largest among many others that are betting on the adoption of hydrogen fuel as a source of energy. 

Yeah, even should the hydrogen sector not reach its full potential FCEL has another interesting technology up its sleeve. That’s because the company specializes in highly engineered biogas production. This biogas relies on bacteria performing anaerobic respiration to digest contaminants while producing usable heating gas.

Despite this already exciting technology, a lack of dedicated customers and a relatively small market have resulted in FCEL achieving a market capitalization of only $385.66 million. Depending on governmental initiatives and general demand for biogas. FCEL could potentially reach $2.00 per share, up from 87 cents. 

Ginkgo Bioworks (DNA)

A company with an MIT pedigree always seems like a strong bet on paper. That’s where Ginkgo Bioworks (NASDAQ:DNA) started its current trajectory into the world of cellular biological engineering. Using a brilliant methodology of genome editing, Ginkgo Bioworks can use living cells to develop everything from industrial applications to pharmaceuticals to agricultural products.

For example, to currently combat the dropping soil productivity around the world, Ginkgo Bioworks is partnering directly with Bayer to develop plant probiotics for better crop nourishment and yield. Furthermore, the company has mastered using naturally occurring cellular organelles, such as ribosomes and the endoplasmic reticulum to produce enzymes and other biomolecules in large quantities from natural cellular processes.

With such a broad category of industries served, Gingko Bioworks has serious potential to move into a future that will rely more and more on biochemical engineering to survive. With its current price trading around a dollar and a market cap of $1.86 billion, Gingko Bioworks is among the best high-potential stocks to buy right now.

On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.