Newcastle go to Palace on Saturday, with the Eagles sitting in 19th place on the Premier League table.
But Howe says: "I don't think that is a reflection of the strength that they have and how they play. Certainly Selhurst Park is always a difficult place to go to.
"I look back to their win against Tottenham, I thought they played really well and I think their recent results have seen an upturn in performances and results. I think they have been more competitive in the last few games."
On Newcastle's medical room now clearing, he added: "I think it is a position we weren't in at all last season, maybe at the start of the season we were but that soon ebbed away with the huge amount of injuries we had. Certainly you want that squad depth, especially in this month."