ASX lithium shares have been on a rollercoaster this year, and the turbulence may have taken a toll on Pilbara Minerals Ltd (ASX: PLS) investors.
At one point, the S&P/ASX 200 Index (ASX: XJO) lithium favourite had tumbled more than 40% year to date. Fortunately it's turned things around, rocketing to a record high of $5.08 last week.
But are Pilbara Minerals shares a good investment?
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To the victor go the spoils
Assuming I'd invested $1,000 in Pilbara Minerals stock on the first trading day of 2022, I probably would have bought 284 shares for $3.52 apiece.
And that would have marked a good short-term investment. My initial $1,000 holding would have been worth $1,312 at yesterday's close, having returned 31.25% in that time. Not too shabby, if I say so myself.
But it wouldn't have been a worry-free buy. The Pilbara Minerals share price closed at $2.04 in mid-June.
Meaning, at its lowest point, my holding's value would have been a disappointing $579.
And while I'd love to factor in dividends to the equation, I unfortunately cannot. Though, one top broker previously tipped the company to pay its maiden dividend this financial year.
So, with my wishful investment having shot up in value over the last 10 months – despite plenty of volatility – is the stock worth snapping up right now?
Is it too late to buy Pilbara Minerals shares?
The ASX 200 lithium stock recently surpassed a major milestone, posting its first profit. The company brought in $1.2 billion of revenue and posted a $561.8 million after-tax profit over the 12 months ended 30 June.
It also boasts a decent cash position and expects to up its production in coming years amid surging demand for lithium.
However, the future of the Pilbara Minerals share price will likely be contingent on a single outside factor – lithium prices.
Of course, expected demand levels will likely drive up the price of the 'white gold', thereby boosting Pilbara Minerals' bottom line.
Analysts at Wilsons are among many expecting big things from the commodity's value as demand outstrips supply in coming years, as my Fool colleague Tony reports.
Meanwhile, Macquarie expects Pilbara Minerals shares will surge to $5.60, slapping the stock with a buy rating, The Motley Fool Australia's James reports.
All in all, I think the future still looks bright for the ASX 200 lithium favourite. If I somehow found myself back at the start of 2022, I know where I'd be putting – and keeping – my cash.
