The U.S were losing finalists in the Confederations Cup in South Africa in June - beating Spain in the semi-final before giving up a two goal lead in their 3-2 loss to Brazil in the final and Davies believes that shows what they are capable of.
"I think we showed we have the potential to really make an impact at the World Cup. If we are all playing well, with the players we have and if we are all on the same page there is no reason why we couldn't win a World Cup that's for sure," Davies, who plays his club football with Sochaux in France, told Reuters after practice on Tuesday.
"We have what it takes, we have beaten Spain, we have played against Brazil and we went toe to toe with them - it all depends what sort of team we are going to play like. If we play like we did against Spain there is no reason why we couldn't make a big impact in the World Cup," he added.
The U.S, who are top of the CONCACAF qualifying group, can book their place in the finals, with a game to spare, if they win away away to Honduras on Saturday or simply do no worse than fourth placed Costa Rica.
Even if they fail on Saturday - they then have a second chance when they face Costa Rica in the final qualifying game on October 14 in Washington.
"It is definitely better to qualify sooner rather than later - you certainly don't want to go into the last game needing three points although we know we can do it.
"But you don't want to go into last game thinking one mistake could cost you (a place at) the World Cup," said Davies.
The U.S, who have never won the World Cup, will be without attacking midfielder Clint Dempsey who has a shoulder injury and while Davies said the Fulham player will be missed he is sure his replacement -- possibly Houston midfielder Stuart Holden will be a capable deputy.
"Clint is a huge player for us, everyone knows that, we saw what he could do in the Confederations Cup. It is definitely a big hole to fill but Stuart Holden has done great and we have other players who can step up.
"Stu is really good at picking out players and getting the ball in difficult spots so if he gets the call I know he will be ready for it," he said.
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