Sunderland were stuck in the relegation zone in January, and they looked in serious danger of dropping out of the Premier League.
However, the Black Cats managed to survive after putting together a very strong run of form in 2016.
Sunderland have lost just once in their last 11 outings, and they have finished two points above the bottom three.
The additions of Lamine Kone, Wahbi Khazri, Jan Kirchhoff and Dame N’Doye were crucial to this revival.
And Shearer said: “He’s done a magnificent job. They got him in at the right time and gave him time to bring his players in. Kone, Khazri, Kirchhoff and N’Doye have played a huge part.
“Not only recruitment has been difficult, but it’s about getting the players up to speed. He has done that in no time whatsoever.”
Sunderland finished their season with a 2-2 draw with Watford, to end up on 39 points.
The Wearsiders named a young team against Watford, with the pressure off, and their youth prospects put in a good account of themselves.
Sunderland have now expressed a desire to move forward as a club, and stop finishing just above the relegation places.
The Black Cats have pulled off a series of great escapes in recent years, but Allardyce now wants to see the side start to move away from the relegation spots.