In an interview with Bauer Radio Network, the X Factor judge said that Keegan's talent stands out when she watches the ITV1 drama.
Discussing her home life, Cole explained: "I love to watch soaps. If I have had a busy week, I tape them all and watch them like an omnibus. So I lie in bed, have a cup of tea, have some Hobnobs and I just watch all the soaps.
"And I kind of feel like their drama takes away from anything else going on. You can't believe what's going on in the soap."
Revealing why Coronation Street is her favourite, she continued: "There's more Northern stuff to relate to and I think there's some fantastic new actors and actresses, especially that young girl, Michelle Keegan. I think she's fantastic and I love watching it."
In recent weeks, viewers have seen Keegan's Weatherfield character Tina McIntyre struggling to cope following the death of dad Joe.