Pardew, who was the manager of Newcastle from December 2010 until the end of December 2014, has been in charge of Palace since January 2015.
“Alan Pardew is doing a superb job at Crystal Palace and I am sure he is enjoying it there,” Newcastle legend Shearer wrote on Coral.co.uk. “They have made a more than reasonable start and they have some good young players.
“His achievements are probably under-rated by many still and with so few English managers in the top league he is leading the way.
“He looks refreshed, certainly more energised than he did at Newcastle, and he certainly seems to have a great relationship with the chairman there at Palace."
Under Pardew, Newcastle did not exactly have a bad time, but the fans were never entirely happy and wanted more.
The Englishman’s playing style did not go down well with the St. James’ Park faithful, who also wanted the club to show more ambition.
While Newcastle are now struggling in the Premier League relegation zone, Palace are flying high in the top half of the table and are just a point behind fourth-place Arsenal.
Pardew, a former Palace player, is enjoying himself at Selhurst Park, and that is a key reason why the Eagles are doing so well.
The London outfit finished 10th in the Premier League table last season. It will not be a surprise if Palace end up higher than that in the standings this term.