The Magpies are just four points off the Champions League qualification spots after winning seven of their last 10 Premier League games.
Pardew's men sit eighth in the Premier League going into their New Year's Day clash at West Brom and are just four points adrift of the Champions League places.
Newcastle's performances this season are in stark contrast to last campaign, when the St. James' Park outfit finished a mere five points above the relegation zone in 16th place.
And, although Newcastle lost 1-0 to league leader Arsenal in their final game of 2013, Pardew has been delighted with the revival he has been able to engineer.
"I feel like I am standing on top of the world at the moment compared to where I was last year," he told reporters. "You have to have faith in your ability and faith in the work that you do. As a manager, you know you have ups and downs unless you are at one of the very, very big clubs and are fortunate enough to have the finance to have 22 full internationals, like Manchester City and Chelsea and Manchester United and Arsenal.
"We haven't got that luxury, so it's not a great day every week, and you have to accept that. There are a lot of games to be played between now and the end of May, and we are in great shape."