New manager Mauricio Pochettino strengthened significantly in the summer, acquiring goalkeeper Michel Vorm, defenders Eric Dier, Federico Fazio, DeAndre Yedlin and Ben Davies before purchasing Benjamin Stambouli from Montpellier on transfer deadline day.
|11/4||Tottenham are 11/4 with Paddy Power to finish in the top four|
"I’ve been encouraged with the start, obviously Daniel Levy’s backed a manager again," Sherwood told talkSPORT.
"Say what you want about Daniel Levy but he backs them in the transfer market and makes sure they get the players, and he’s gone out there and signed six players.
"I don’t know much about Stambouli, the boy from Montpellier. Fazio is an experienced Argentinian defender who won the Europa League last year with Sevilla. [Pochettino] would know him very, very well.
"I think that’s what they need, they need some cover there at centre-half just in case Younes [Kaboul] gets injured and I would say they’re probably one short of a striker to really challenge for top four."
Sherwood believes Liverpool’s emergence as genuine title contenders serves as another blow to Spurs' aspirations of qualifying for the Champions League, while he is also wary of Manchester United – who signed Angel Di Maria and Radamel Falcao in the final weeks of the transfer window.
"It doesn’t get any easier, every year, as much as you try," Sherwood added. "Obviously the emergence of Liverpool has put everybody’s nose out, because there’s another spot which looks like it’s going to be taken.
"Brendan [Rodgers] has done a great job there. Obviously he's built a philosophy there, took a step back and decided what they were going to do and they've moved forward and got the correct man to be able to apply that.
"Obviously Man United, now, are unrecognisable to any Man United side we've seen over the last 10 years. They would never, ever sell their academy players who were playing in the side but now they've decided to do that and they're going out and buying the very best players from all over the world.
"It's very exciting for the fans but, for the long-term future, of the club, I think it hurts them."