Newcastle United lost 5-1 to Chelsea in their most recent outing.
The Magpies are currently in the relegation zone, having lost their last match 5-1 against Chelsea.
However, Sherwood feels that Newcastle’s January signings have improved their squad considerably, and he has backed them to get out of trouble.
“Jonjo Shelvey wasn’t great against Chelsea, but I think he’ll be an excellent signing,” the former Aston Villa manager said.
“I think with their home form, with the crowd behind them and with the money they spent in January, they’re safe.”
Newcastle brought in Jonjo Shelvey, Andros Townsend, Henri Saivet and Seydou Doumbia in January.
The North East club spent more money than any other side in England, but improvements only seem to have been made at home.
Newcastle are unbeaten at St. James’ Park in 2016, but their form away from home has been woeful.
Steve McClaren’s side have been heavily beaten by Everton and Chelsea in their last two away fixtures, and unless the Tynesiders can start tightening up on the road, they could struggle to move away from the bottom three.