Midterm elections will  “deliver incremental catalysts" to the marijuana industry regardless of which political party emerges victorious, according to analysts.

In a research note, reported on by CNBC, Cowen's Washington Research Group said that a Democratic win would be better for the sector, before concluding that the Republican party holding onto its majority could also boost pot stocks more than before.

"Few industries are better positioned than cannabis regardless of outcome," Cowen senior analyst Vivien Azer wrote in the note. "Generally speaking, the higher the Blue Wave, the better for the budding industry though even a potential Red Wave is likely to feature pockets of good news."

Should the Democrats win more seats, Azer expects lawmakers in the party to focus on moving pro-cannabis bills out of the White House. Meanwhile, if the Republicans keep a majority she anticipates that things will stay the same, other than the removal of anti-marijuana Attorney General Jeff Sessions.

Sessions, who previously said that "good people don't smoke marijuana," is expected to be fired after President Donald Trump criticized him. Azer believes that his time could be up and is confident that his replacement is unlikely to be as hostile toward the pot industry. (See also: Marijuana Short Sellers Have Lost $626M Since August: Report.)

Stock Picks

Cowen advised its clients to buy five stocks in the sector, including two of the highest risers and biggest targets of short-sellers: Tilray Inc. (TLRY) and Canopy Growth Corp. (CGC). Tilray, the first marijuana company to go public on the Nasdaq, has now risen 1,159% from its initial share price of $17 in July, prompting a growing number of analysts to describe the stock as overvalued. (See also: Tilray Shares Halted 5 Times In Wild Trading Day)

Canopy is another stock making noise for being one of the few cannabis companies to have signed significant supply agreements. Excitement has grown since Constellation Brands Inc. (STZ.B)  announced a massive $4 billion deal last month to increase its ownership stake from less than 10% to nearly 38% in Canopy.

Cowen is also backing alcohol maker Constellation Brands, loss-making KushCo Holdings Inc. (KSHB) — a pick and shovel cannabis play — and Imperial Brands PLC (IMBBY), the first big tobacco company to make an investment in the marijuana industry. In June, the company behind the Kool and Winston cigarette brands, invested in British medical marijuana research firm Oxford Cannabinoid Technologies. (See also: A Marijuana ETF Just Crossed $1B in Assets.)