Newcastle open their season against Aston Villa today.
Shearer told BBC Sport: "I think Newcastle could challenge to be the best of the rest. I think the top six is what it is; if they challenge West Ham or Aston Villa for seventh, eighth, ninth.
"They've made some good signings, they've not overspent. I think they need another forward, whether a centre forward or someone who can operate from out to in. I would be really confident of them having a good season. They'll want more of the same from last year; Eddie Howe has done a fantastic job, signed a new contract yesterday.
"Newcastle is buzzing."