What happened

One month ago, a big analyst downgrade sent shares of Texas-based homebuilder LGI Homes (NASDAQ:LGIH) tumbling 14% -- but what goes down can also go up after earnings, and today, LGI Homes stock is hopping 15.3% higher, as of 11:30 a.m. EST.

So what

One month ago, I explained that the big hit LGI stock took after a downgrade from Wells Fargo (predicated on "decelerating" growth and a "premium" valuation) left the stock looking "pretty cheap" and "due for a bounce." Today, that due date has arrived.

Stock chart pointing up.

Wonder why this stock is going up? Allow us to explain. Image source: Getty Images.

LGI Homes reported a 34% rise in home sales revenue this morning, a combination of a 20% increase in home closings and an 11% jump in the sales prices on those homes. Earnings for the quarter were $1.01 per share, diluted, beating Wall Street's estimates by $0.07 per share. For the year, LGI reported profits of $3.41 per share on revenue of $838.3 million.

Now what

Adding to the stock's momentum, LGI gave new earnings guidance for the current fiscal year, predicting that earnings will grow at least 17% to $4 per share this year and perhaps rise as high as $4.50 per share.

With the stock still selling for less than 10 times earnings and promising growth well into the high double digits, now seems like a fine time for investors to own the shares -- and for Wells Fargo to issue a sua culpa and reupgrade LGI Homes stock.