The Gunners go to Molineux today to face Wolves.
And McCarthy insists: "Do I think they're the best side to watch? Yes. Nobody else has got me applauding in my seat or got me off my sofa.
"If you love football, you watch them all day long. I wouldn't argue with Arsene that it's the best attacking team he's had. But they've conceded a few goals. They let in two against West Ham after going 2-0 up.
"Because of how they play, they don't defend set-pieces better than anyone.
"We'll have some or all of those so there are ways to score against them. If we can stop them remains to be seen."
Wolves are hosting servicemen for Remembrance weekend.
McCarthy said: "If we win, I guess the headlines will be heroic performance. Well the heroes who are coming are the soldiers, they are the real heroes."