Continuing a down draft from the end of 2007, shares of most publicly traded Chattanooga-based companies fell in the first three months of this year.

Also, it could take more of 2008 before stock prices begin to rebound, said Chris Hopkins, vice president of investments for Barnett & Co.

“We have another rough quarter ahead of us,” he said. “Earnings estimates are still too high. They have to come down some more.”

Tow truck maker Miller Industries’ stock price fell almost 30 percent in the quarter.

Miller officials reported last month that demand was affected negatively by uncertainties associated with the softening economy, consumer confidence, rising fuel prices and tighter credit markets.

Profit in its last quarter declined 91 percent, according to the company.

On the up side, Astec Industries, a maker of road construction equipment, in February reported record high sales and profits in 2007. Revenues for the company in 2007 were $869 million, compared with $711 million in 2006.

Also, Next Inc. reported in February that improvements in its operating margin are yielding tangible results. The designer and distributor of licensed imprinted sportswear posted higher net income in its most recent quarter over a year ago.

Paul Fitzgerald, a financial representative of Northwestern Mutual Financial Network, said he is “cautiously optimistic” about where the economy will be at the end of 2008.

“Going into 2009, I’m very optimistic,” he said.

But, Mr. Fitzgerald added that it may get more difficult between now and then.

Mr. Hopkins said the markets appear promising once earnings expectations are rationalized.

He said decisive action by the Federal Reserve related to investment bank Bear Stearns a couple of weeks ago may prove to be a turning point in the credit markets.