The young winger, after an initial slow start, has been in impressive form recently and has emerged as a key performer for the Ibrox side.
His intensity and direct play, whether on the wings or in the No. 10 position, have contributed five goals and three assists, making him a constant challenge for opposing defenders.
Sherwood, a former player and manager at Spurs, believes Moore could be a valuable asset to the club as they languish at 16th in the Premier League table.
Spurs currently face a potential relegation crisis amid an injury crisis.
He told Footy Accumulators' No Tippy Tappy Football podcast, in partnership with BOYLE Sports: "They loaned him out because there's no pathway for him.
"I think it's a great pathway there (at Rangers) for him to gain some experience.
"No one (at Tottenham) fancied him at the moment, and they would probably argue and say, ‘We'll let him gain experience’.
"I would argue that he's better than what you've got, so bring him back and let him play games.
"Not only would he be better than some of the players that they've signed and are in the squad, but you're also having a shocking injury crisis."
Sherwood didn't just have Moore in mind as players who could contribute to the Spurs squad.
He also spoke about other loanees, saying: "Not only Mikey Moore, Luka Vuskovic should’ve been brought back from Hamburg in my opinion.
"He’s played pretty much every game and scored four goals, he’s a big centre-back.
"Phillips, the boy they signed from Blackburn, who’s on loan and plays every week at Stoke, he should’ve been brought back - and not just for no unnecessary reason, but to play."
Sherwood acknowledged the potential relegation battle facing Spurs but believes taking a gamble on these young players could prove beneficial, adding: "Some might say, ‘But you’re in a relegation battle’ - yes, they are, and that’s with the group they’ve got playing at the moment.
"Give these guys an opportunity.
"Not only Mikey, and I’m not saying they’re going to be the answer, but they might be."