The former Aston Villa boss has lauded the 27-year-old striker.
Gestede came on to net Villa's equaliser against Leicester City on Saturday afternoon and Sherwood is impressed with his ability to 'bully' defenders.
The 27-year-old hasn't always endeared himself to fans at Villa Park but more performances like Saturday's will do the forward's reputation among supporters no harm.
Sherwood told Sky Sports: "Gestede is a player with one outstanding quality. He's got more but he's a bully. He's a big threat, he's outstanding in the air and he makes defenders scared.
"[Wes] Morgan and [Robert] Huth knew they were in a game in that second half. Leicester went back and pushed deeper and deeper."
Things are looking far better for Remi Garde than they were a week ago. A win and a draw this week have given Aston Villa some hope.
And, as Sherwood has highlighted, the Frenchman looks as though he has options. Garde is powerful in the air and even scored with his feet against Leicester.
The biggest problem for the Villa boss is time. The Midlands outfit are making small strides, strides that would be very useful closer to the beginning of the season.
But Aston Villa don't have the luxury of time to sort out their gaping issues. Hopefully they can find some wins soon, although a 1-1 draw with in-form Leicester is a good result.