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Ancelotti was named Toffees boss on Saturday but has his work cut out with his new team just four points above the relegation zone.
Goals have been a problem for Everton with just 20 coming in the first 18 games of the season
Cascarino thinks they should be targeting Wolves forward Raul Jimenez and Southampton’s Danny Ings.
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He told talkSPORT: “I’ve mentioned Raul Jimenez for Everton and again I’ve been saying this for a while, I would be tempted to snatch another one away.
“I’d be trying to get Danny Ings out of Southampton. Sorry Southampton fans.
“I had this conversation with you six weeks ago where I said the one player who might keep Southampton up will be Danny Ings. That’s the one I would be looking at.
“I think he’s been terrific and has had two bad injuries and he’s come through it like Callum Wilson has done.