They have come in 16 appearances in the RaboDirect PRO12 with Davies touching down his ninth of the season in the thrilling 32-30 defeat of Connacht at the end of last month.
Davies is yet to earn international recognition but former Scarlets scrum-half Peel, who won 76 caps for Wales, wants that to change sooner rather than later with a tour to South Africa this summer.
"He's definitely the form scrum-half at the minute," said Peel. "I'm sure he'll get the nod. Rhys Webb would definitely have gone on tour, but it's given a chance now for someone else to come in and fill that role.
"He's scored more tries than anyone in the league. He's really developed his game over the last couple of years. His passing game has become really good - and his kicking and all-round game-management.
"He's very strong and physical, but what he can do is break particularly well. He's exceptionally fast."
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