McGugan signed from Watford earlier this summer, after spending half a season on loan with Wednesday in the previous campaign.
Holloway did however say he feels the Owls winning start to the season will end this weekend, predicting a 2-2 draw with Ipswich Town.
He said: "Nobody knew that much about Carlos Carvalhal but it’s a very impressive start for him at Sheffield Wednesday; they played some great stuff against Bristol City and then overpowered Mansfield.
"I really like Lewis McGugan; he's quality behind the front man, a big signing for them.
"Mick McCarthy's one of my favourite managers. I think he's fantastic. Two tough teams, could go either way, but I'm going for another score-draw."
Holloway was not so positive about Sheffield Wednesday last week, calling a 2-0 home defeat for them against Bristol City, only to see them pick up all three points.
Ipswich however were a play-off side last year and will be no pushovers. A draw at Portman Road would be a creditable result for the visitors.
The Tractor Boys are looking for their first Championship win of the season, drawing 2-2 away at Brentford. They warmed up with a 2-1 win over League One side Stevenage in the Capital One Cup in midweek.