One of my favorite video game stocks, GameStop (GME), just had a great earnings report.

GameStop Corp., the biggest retailer of video games, said Tuesday fiscal fourth-quarter earnings climbed 46 percent as demand for popular games such as Guitar Hero III and Call of Duty 4 led to a surge in sales.

Net income in the quarter ended Feb. 2 rose to $189.8 million, or $1.14 per share, from $129.8 million, or 81 cents per share, in the year-ago period.

The result was better than the $1.12 expected by analysts in a Thomson Financial poll. Sales rose 24 percent to $2.9 million from $2.3 million last year, in line with Wall Street estimates.

For the year, profit jumped to $288.3 million, or $1.75 per share, from $158.3 million, or $1 per share, and sales rose to $7.1 billion from $5.3 billion.

I first recommended the shares in Emerging Growth in August at just below $40. We're currently sitting on a 23% gain in just seven months.

I rate the stock a strong buy for all types of investors up to $47 a share.