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S&P 500 to 2,150 in 2015: Goldman's David Kostin

The S&P 500 index will reach 2,150 over the next year, an 8 percent increase from current levels, Goldman Sachs' David Kostin told CNBC on Tuesday.

After all, the stock market tends to perform well in advance of an interest rate hike, Goldman's chief U.S. strategist said on "Squawk on the Street." Goldman expects the Fed to raise rates in the third quarter of 2015, he said.

Once the Fed raises rates, though, "it becomes a more challenging environment for stocks to go higher" because multiples will climb, he said.

At the close of trading Monday, the S&P was at 1,984.13.

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Still, Kostin revealed a few ways Goldman Sachs is positioning itself now.

To start, Goldman is looking for ways to play a stronger U.S. dollar versus a weaker euro through year end or early 2015. He listed Paychex and Discover Financial Services as examples, being as revenues for both companies are nearly 100 percent domestic.

"In a U.S. economy growing at roughly 3 percent, compared with a Europe growing at maybe 1 percent, we're looking for ways to play a better tailwind revenue story and also the translation effect is a headwind for a lot of exporters," he said.

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On the belief the markets will rise and the U.S. economy will continue to gain strength, Kostin recommends gaining exposure through stocks with attractive valuations, including Delta Air Lines, Netflix and Halliburton.

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By CNBC's Drew Sandholm