Absolutely no problem!
There are regular coach services operated by:
Eva Transportes
Services several times daily departing Lagos Bus Station arriving Lisbon Sete Rios Bus Stations for Metro Jardim Zoologico
RENEX
Services several times daily departing Lagos from their booking office next to the the Repsol Service Station on the Avenida in Lagos arriving Lisbon Orient Bus Station for Metro Gare Oriente
Timetable download in pdf format available from my blog - see below. (Click on RENEX Bus Service - Lisbon to Algarve timetable)
Train
Summer Schedule 2007 - 6 services daily.
For timetable go to my blog at
http://barlaventostravelblog.blogspot.com
Scroll down on the right till you come to the section:
>> Algarve & Portugal - Travel Transport Links
Click on
↓ Portuguese Railways - Summer 2007 - Lisbon - Algarve Faro/Lagos Timetable
You will then get a pdf download of the relevant timetable direct from Portuguese Railways. I provide this link as the CP site can be a bit confusing.
Prices will vary between €16 and €30 each way depending on mode of transport and class (on trains.)
It is eminently possible to do a day round trip ...but very tiring. Better to ovrenight in Lisbon.
For more info see these sites:
Cubsur's site at
www.algarvebus.info
and
http://www.solpraiaferias.com/index.php?content=cheg_en
Have safe trip