The Candystripes go into the match hoping to overcome a “gutting” late equaliser from St Patrick’s Athletic in Monday’s 2-2 draw at the Brandywell.
That left Derry searching for a first home win of the season, but they have performed well on their travels.
In their last five games, Drogheda picked up four wins and a draw, putting them into fourth place.
“Drogheda are a vibrant young team with energy and some experience,” said Higgins.
“If we are to pick up three points we will have to be at our very best and match them in every department.
“They are only six points off top and will have their eye on the European spots, and rightly so.
“I know [Drogheda manager] Tim Clancy and his assistant quite well, they have done a great job in putting that team together and it has been together for a long time with a few additions in the off season.
“They have momentum, they are the form team in the league and if we show any arrogance at all they will turn us over, but if we show them the respect they deserve then we can pick up a positive result.”
Derry are undefeated in their last four, though have picked up only one win in that spell and are eighth in the 10-team table.
Drogheda are eight points better off than Derry and six behind leaders Sligo Rovers.
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