Federal Home Loan Mortgage Corporation (FMCC) Is Among Michael Burry’s Top Picks In 2026

Federal Home Loan Mortgage Corporation (OTCMKTS:FMCC) is one of the 9 Stocks Big Short’s Michael Burry Is Betting On. Michael Burry is betting on Federal Home Loan Mortgage Corporation (OTCMKTS:FMCC), to which he has been adding this year as well. The stock has also gained attention lately due to hedge fund manager Bill Ackman’s interest. Ackman believes FMCC is one of the most undervalued quality stocks in the market right now, primarily due to the Iran war. He sees the war as a short-term issue, making the stock attractive at these depressed levels. Moreover, he has been buying the stock since early 2025.

Federal Home Loan Mortgage Corporation (OTCMKTS:FMCC) is one of the 9 Stocks Big Short’s Michael Burry Is Betting On.

On April 25, BTIG analyst Eric Hagen had set a target price of $20 on Federal Home Loan Mortgage Corp (OTCMKTS:FMCC) and maintained a Buy rating on the stock. On a more bearish note, Keefe Bruyette lowered its price target from $9 to $8.5, which is quite close to where the stock is currently trading. The firm believes FMCC will report higher profits for the first quarter, as its core business of guaranteed home loans is going exceptionally well. The analyst does not see any significant probability of privatization happening before the US mid-term elections.

Federal Home Loan Mortgage Corporation (OTCMKTS:FMCC) provides mortgage market services in the United States secondary mortgage sector. The company operates through the Single-Family and Multifamily segments. It securitizes, purchases, and guarantees mortgage loans while also managing mortgage-related credit, investment portfolios, and market risks.

While we acknowledge the risk and potential of FMCC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FMCC and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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