The 22-year-old striker, who is on loan from Oldham Athletic until January, opened his account for County with his goal at Yeovil on Saturday in the first round of the FA Cup.
And Gannon believes Davies is already showing himself to be up to the task of playing as a lone striker.
"Craig has got an array of skills which is why we wanted to bring him here," said Gannon. "You want someone to hold the ball up and also be a threat behind.
"You want someone to be a target man and also a finisher.
"He's filled a difficult position for us. He did really well on his debut against Carlisle last week.
"And at Yeovil his work ethic and contribution to the game was good, along with quite a lot of players who contributed well."
Victory over Yeovil in the replay at Edgeley Park next Tuesday would earn County another long trip in the second round, this time to Gillingham.
"We have a very tough replay against a lively Yeovil side that we have to win first," added Gannon. "It's a disappointing draw for our fans because it is such a long way to go.
"And, leading up to Christmas, that's really going to test the finances of our loyal fans." Tweet
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Shivers are starting around EP with the news that Jim has turned down the new contract offered to him a few weeks ago. Unless things are resolved we could loose the man who has pulled us out of the dark times, and led us to the verge of another go in the Championship. Gut wrenching