Stowell made 378 appearances between the sticks in an 11-year spell at Molineux and is now a first team and goalkeeper coach at top-flight rivals Leicester.
And having won the title with the Foxes in 2016, he thinks Nuno Espirito Santo's side – who have Europa League qualifiers in July after a seventh-placed finish – can upset the odds themselves by breaking into the Champions League.
When asked if Wolves could repeat Leicester's mighty feat, Stowell said: "If asked, before we did it, I'd say no, it's not possible.
"But we did it, so there's no reason why it is not possible.
"It's getting harder because of the likes of Manchester City and Liverpool, as they spend, each year, another £80million or £90m – on top of what they've already got.
"Some teams, to get to where they are, would have to spend £400m now, and then millions every year.
"You're not catching those teams up unless you create a team and a work ethic, and Nuno has done that at Wolves.
"He has found a way of playing, and a style of play that is fantastic. They're a team who are good to watch, attractive to watch.
"They've been one of the best against the bigger teams, so if they can sort it out against (the struggling sides), they can be a top-four team – Champions League. It's absolutely reasonable."
Stowell said the Foxes are aiming to get back in the top four under Brendan Rodgers too.
He also reserved praise for Wolves' current crop of shot-stoppers – Rui Patricio, John Ruddy and Will Norris.
"Looking in from the outside, John has played lots of football and is an excellent keeper, and he's taken to that supporting role," said Stowell.
"Rui is a class keeper, and I'm sure they get on well and drive each other on.
"We've got three at Leicester in Kasper Schmeichel, Danny Ward and Eldin Jakupovic, it's a great working environment – one to push each other.
"Goalkeeper is the most difficult position because every outfield player will get rotated, but sometimes your No.2 keeper can only play two games.
"It's a tough one, but if you've got the right environment, the right keepers, it works well. It's the way forward."